The stock of Global Payments (GPN) is up 6% on media reports that activist investor Elliott Investment Management has built a sizable stake in the company.
Global Payments is a leading financial technology company that provides payment technology and services to merchants and consumers.
The Financial Times was first to report that Elliott Management, one of the world’s largest and most aggressive activist funds, has built a stake in Global Payments.
The exact size of Elliott’s stake in Global Payments isn’t known, but the activist investment firm has a reputation for pushing companies to change in ways that reward shareholders.
Elliott Management has targeted Global Payments after its stock dropped 55% over the last five years, including a 30% decline since the start of this year.
Global Payments’ stock has failed to recover from a big drop this past April after the company bought rival Worldpay for $24 billion U.S.
The acquisition expanded Global Payments’ reach but grew its debt load and created difficulties in integrating the two businesses.
Before the Worldpay purchase, Global Payments had been divesting various business units and buying back its own stock.
Neither Global Payments or Elliott Management have commented publicly on the media reports or relationship between the two firms.
GPN stock is currently trading at $82.25 U.S. per share.
Tech Insider
