PayPal sets date for eBay merger vote

PayPal has set a date for shareholders to weigh in on its proposed acquisition by eBay.

The online payments company will put the matter to a vote Oct. 3, PayPal said in a document filed with the Securities and Exchange Commission on Wednesday. Investors who hold shares of PayPal stock on Aug. 28 will be eligible to vote on the deal, the company said.

In a deal that would combine the dominant online auction company with the leading online payments service, eBay agreed last month to purchase PayPal, proposing to exchange 0.39 eBay shares for each outstanding share of PayPal stock. At eBay's current stock price, the deal is worth about $1.42 billion.

On Tuesday, the U.S. Department of Justice said that it had closed its investigation into the acquisition, clearing one of the deal's legal and regulatory hurdles. The merger also faces scrutiny by the courts because of the many lawsuits filed on behalf of PayPal shareholders who want to block the deal.

Because it is only issuing about 8 percent of its outstanding shares to buy PayPal, eBay is not expected to put the matter to a shareholder vote. eBay representatives did not return calls seeking comment about the merger.

PayPal will hold the merger vote at a special shareholder meeting at its former headquarters in Palo Alto, Calif. Shareholders will also be able to vote by proxy.