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Google, eBay merger touted

Instead of breaking up eBay (EBAY) and PayPal, Google (GOOG) should acquire them both to create an Internet colossus, a Baird Equity Research analyst suggested. EBay is under pressure from activist investor Carl Icahn to spin off its electronic payment service to unlock shareholder value, which eBay executives have resisted. The analyst believes a merger is a "potentially more attractive option (that) is missing from the discussion." Google shares rose 1.7% to 1,192.10. EBay rose 1.2% to 57.42.