Activist investor Elliott Management has built up a substantial stake in the London Stock Exchange Group (LSEG), engaging with the company to enhance its performance during a period marked by reduced listings and growing concerns over artificial intelligence disruption.
Stake Details and Market Reaction
The exact size of Elliott's shareholding in LSEG remains unclear, but the Financial Times first reported it as significant. The fund has held discussions with LSEG to drive improvements, encourage a fresh share buyback, and narrow the gap with its rivals. In response, LSEG shares surged by as much as 6% in early trading on Wednesday before slightly retreating.
LSEG's Business Shift and Challenges
While LSEG is best known for operating the London Stock Exchange, it has increasingly moved away from traditional stock market activities. Following its 2020 acquisition of the financial data provider Refinitiv, nearly half of its revenues now come from its data and analytics arm. However, the company's share price has declined steadily over the past year, dropping more than 35% in the last 12 months.
Investor concerns have centered on potential income squeezes from AI disruption and heightened competition. A notable 13% tumble occurred at the start of the month after the US AI startup Anthropic launched a tool for legal departments, which investors fear could impact LSEG's data business.
Elliott's Activist Track Record
LSEG is the latest target for Elliott, a feared New York hedge fund known for taking stakes in companies it believes have lost value due to mismanagement. Earlier in 2025, Elliott built a stake in BP worth nearly £3.8 billion, becoming the oil company's third-largest shareholder. This led to the ousting of BP's chief executive, Murray Auchincloss, in December after less than two years, following pressure from Elliott, which also successfully campaigned against chair Helge Lund.
Elliott has previously agitated for changes at other firms, including the drugmaker GSK and the housebuilder Taylor Wimpey. Additionally, Elliott owns the combined Waterstones and Barnes & Noble bookstore chains and is reportedly preparing to list them on the stock market, with London being a preferred location over New York, potentially boosting the UK market.
Context of UK Listings
There was a pickup in the rate of businesses choosing to list in London in the second half of 2025, yet concerns persist that takeovers and delistings have reduced the number of UK public companies. Both LSEG and Elliott have declined to comment on the stake and ongoing engagements.
