Elliott Management has publicly announced its holding in the London Stock Exchange Group (LSEG.L) and is calling for more actions to enhance value. The New York-based investment firm, known for taking activist positions, revealed it holds a “significant stake” in the British company. LSEG operates a range of international exchanges, data, and analytics businesses. It is home to the London Stock Exchange and provides news for its Workspace news and data terminal, as well as other products.
Elliott acknowledged LSEG’s recent announcement of a 3 billion pound share buyback, margin-improvement plans, and improved communication regarding its AI strategy as a “positive first start.” However, the firm suggests that further steps are needed to fully unlock the potential of LSEG’s assets and close the valuation gap with its industry peers. Elliott had previously pushed LSEG’s CEO for a larger buyback, a portfolio review, margin improvements, and a clearer strategy to address AI threats.
The move follows a period of pressure on LSEG, which has seen its market value decline by 23% over the past year amid concerns about the impact of AI. While LSEG’s shares jumped 9% on Thursday following the buyback announcement, other shareholders have expressed a desire for growth rather than relying solely on buybacks and dividends. One top-20 LSEG shareholder suggested the company could increase the buyback if it does not make any acquisitions by the third quarter.
“Elliott looks forward to maintaining a constructive dialogue with LSEG as the company works to realise the full potential of its market-leading assets, close the valuation gap to industry peers and generate long-term value,” the fund stated. LSEG maintains that it has active dialogue with its investors and remains focused on executing its current strategy.
