Activist hedge fund Elliott Investment Management has said London Stock Exchange Group can take additional steps to unlock shareholder value, despite welcoming the group’s newly announced £3bn share buyback, according to a report by Bloomberg.
The fund, led by Paul Singer, described the programme as a “positive first step” but said there remains scope for further value-enhancing actions. LSEG unveiled the buyback alongside a higher dividend and fresh financial guidance, after coming under pressure from Elliott, which has built a stake in the business.
LSEG, which owns the FTSE 100, had been reported to be facing calls from Elliott for a larger £5bn capital return. While the final figure fell short of that level, the hedge fund said improved disclosures, clearer guidance and stronger communication around the group’s artificial intelligence strategy underlined the strength of its underlying business.
Elliott has argued that recent weakness in LSEG’s share price – partly driven by investor concerns around AI disrupting software and data providers – presents an opportunity for the company to demonstrate how its data franchise could benefit from increased demand tied to AI applications.
LSEG chief executive David Schwimmer said the company engages with all shareholders but cannot always meet every demand, as it seeks to balance competing priorities while delivering long-term value.
