Elliott has built stake of at least 5% in Bill Holdings: FT

Elliott has built stake of at least 5% in Bill Holdings: FT

Activist investor Elliott Management has disclosed a significant stake in Bill Holdings, positioning itself for a potential boardroom battle. The hedge fund, led by Paul Singer, has amassed a stake of at least 5% in the financial automation software company, according to a report by Reuters . Elliott's move comes as Bill Holdings faces operational challenges and a depressed valuation, with shares down 86% since peaking in late 2021.

Elliott's entry into Bill Holdings follows a series of strategic acquisitions in the sector, with rivals like Melio, AvidXchange, and Esker being bought by strategic buyers or private equity firms. The activist hedge fund has a track record of pushing for board changes and operational improvements at U.S. companies, including its recent agreements with Autodesk and Kenvue .

Bill Holdings, valued at nearly $5 billion, processes over 1% of U.S. GDP through its platform. The company has acknowledged its depressed valuation, announcing a $300 million share buyback program in August to boost earnings per share (EPS) and reward shareholders . Four of Bill's 12 directors are up for re-election this year, providing Elliott with an opportunity to nominate its own candidates.

Elliott's nomination slate includes Peter Feld, a partner at the firm, along with former executives from Microsoft, Shift4 Payments, and Global Payments. The activist investor aims to improve shareholder returns by pushing for strategic and operational changes at the company .

Investors will be closely watching Bill Holdings' upcoming shareholder meeting for developments in the proxy contest. The company has held constructive talks with Elliott and will review the nominees through its established processes. The activist's entry comes as Bill Holdings navigates a consolidating sector and an economic climate marked by inflationary pressures and market volatility.

References:

https://www.gurufocus.com/news/3096713/starboard-value-takes-8-stake-in-bill-holdings-eyes-board-challenge?mobile=true
https://www.ainvest.com/news/bill-strategic-resilience-shareholder-creation-challenging-macro-environment-2509/
https://www.hedgeweek.com/starboard-to-launch-bill-holdings-board-challenge-after-building-8-5-stake/
https://finance.yahoo.com/news/starboard-nominates-four-directors-bill-144139041.html