BILL Holdings (NYSE:BILL) rallied significantly on Friday, with the stock climbing 32% after a Bloomberg report said private equity firm Hellman & Friedman has been in discussions to buy the business payments company.
That move built on an earlier advance; the shares had already risen 21% following the company's recent quarterly results, and the takeover talk added fresh momentum to the rally.
According to the Bloomberg account, Hellman & Friedman has been engaging with BILL Holdings and the company's financial advisers in recent weeks as part of what was described as a formal sale process. The report also said that other private equity firms have indicated interest in a potential acquisition, citing people familiar with the matter who spoke on the condition of anonymity because the discussions are confidential.
Separately, the company has been under increasing pressure from activist investors. Starboard Value LP, Elliott Investment Management and Barington Capital Group have been identified as holding stakes and pushing for change at BILL, a factor that the report suggested may have contributed to the company exploring strategic alternatives.
The available information is limited to the items reported: the percentage share moves, the involvement of Hellman & Friedman in discussions, the mention of additional private equity interest, and the presence of activist investors pressing for change. Details on any formal agreement, timeline, valuations or responses from the parties involved were not provided in the report cited.
Market participants will likely look for confirmation from the company, its advisers or any potential buyers to clarify whether talks move beyond the stage described in the report. Until then, the stock's sharp move reflects investor reaction to the reporting and the combination of recent earnings momentum and speculation about a sale process.
Context note: The account above is limited to the facts reported: the share price moves, the report of acquisition discussions involving Hellman & Friedman and BILL Holdings' advisers, reported interest from other private equity firms, and noted activist pressure from Starboard Value LP, Elliott Investment Management and Barington Capital Group. No additional details were provided in the source material.