Shares of eBay lost much of their Friday gains after the online retailer dismissed market speculation that Google may be preparing to buy a slice of the company.
The stock rose as much as 4.7% in unusually heavy volume in the morning, with two European-based traders and one US-based trader citing rumours that Google would possibly take a large stake in eBay as the reason for the move.
"We've had no conversations with Google about acquiring a stake in the company," said eBay spokesman Alan Marks.
Google said it would not comment on rumours or speculation.
eBay shares were up 2.6% at $52.02 at midday after rising as high as $53.07. Google dipped 0.7% to $587.08.
Options volume in eBay spiked to 2.4 times normal, with 98 000 puts and 26 000 calls traded late into the morning session, according to data from options analytics firm Trade Alert.
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