Bill Holdings Pares Losses After Saying It’s Not Pursuing Deal

Bill Holdings Inc. pared share losses on Thursday after the business software provider said it isn’t currently pursuing an acquisition.

Bloomberg News on Wednesday reported that San Jose, California-based Bill was in advanced talks over a cash-and-stock deal for Melio Payments that would have valued the provider of digital payment tools at $1.95 billion.

“Bill is not pursuing any such acquisition at this time,” the company said in a statement after its shares fell as much as 16% on Thursday as shareholders reacted to the news.

Shares in Bill have since recovered some of the earlier losses and were trading ...