Shares in London Stock Exchange Group (LSEG) rose sharply after it emerged that activist hedge fund Elliott Investment Management has taken a stake in the FTSE 100-listed market infrastructure and data provider, according to a report by Bloomberg.
The error cites unnamed market sources as revealing that Elliott, led by Paul Singer, has begun engaging with LSEG’s management as the group faces pressure from weak equity listings activity and concerns around the impact of artificial intelligence on financial data businesses. The size of Elliott’s holding has not been disclosed and remains below the 3% threshold that would trigger a mandatory UK filing.
The Financial Times reported that Elliott is seeking to work with LSEG to improve operational and financial performance. Neither Elliott nor LSEG commented on the investment, according to Bloomberg.
LSEG shares rose as much as 8.4% in early London trading, marking the stock’s largest intraday gain in more than three months, after having fallen around 37% over the past year and 20% since mid-January. The rally lifted LSEG’s market capitalisation to approximately £38.4bn.
The exchange operator has been under pressure following a slowdown in IPO activity, with London falling out of the world’s top 20 IPO venues last year. While LSEG has transformed into a data and analytics-focused business following its $27bn acquisition of Refinitiv in 2021, concerns about AI-driven disruption have weighed on the stock.
Elliott is known for pursuing strategic and capital allocation changes at portfolio companies, though reports indicate it is not pushing for a break-up or sale of LSEG’s exchange operations at this stage.
