WORKDAY SHARES SURGE ON SILVER LAKE TAKEOVER TALKS

Workday shares rose nearly 18 per cent following a report that private equity firm Silver Lake is in talks to acquire the human resources software maker. The stock movement marked the company's best trading day since 2016, with Workday's market value closing at nearly £51 billion. According to Reuters, discussions between the two parties have been ongoing in recent months. Both Workday and Silver Lake declined to comment when contacted.

The potential acquisition comes as Workday shares have faced pressure from concerns that artificial intelligence tools may alter the software sector's business model. In March, co-founder Aneel Bhusri returned to the chief executive role after Carl Eschenbach stepped down. Bhusri has previously served as CEO and co-CEO at the company. One analyst noted that Bhusri and Egon Durban, a figure at Silver Lake, have existing connections through various relationships, suggesting the transaction "could make sense" given recent difficulties affecting the software sector.

Workday posted better-than-expected financial results in May and raised its forecast, citing artificial intelligence tailwinds. The stock remains down 7 per cent year over year despite the recent rebound from earlier losses. No further details regarding the scope, timeline or valuation of the reported discussions have been disclosed.