LSEG Shares Jump After Activist Investor Elliott Builds Stake

Article content(Bloomberg) — Elliott Investment Management has built a stake in London Stock Exchange Group Plc as the FTSE 100 index owner grapples with disruption from artificial intelligence and a plunge in listings, a person with knowledge of the investment said.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentIt’s not yet clear how large a stake Paul Singer’s activist hedge fund has taken or the exact changes it is pushing for. Under UK rules, investors must disclose holdings of 3% or more in publicly traded companies.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentLSEG rose as much as 8.4% in early London trading Wednesday, the biggest intraday gain in more than three months. The company was trading 3% higher at 8:18 a.m in London, boosting its market capitalization to £38.4 billion ($52.5 billion). Article contentArticle contentThe Financial Times earlier reported that the activist had been engaging with LSEG to “help engineer an improvement” in the group’s performance.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentElliott, which is pushing for drastic change at BP Plc, does not want LSEG to consider a full sale or a spinoff of its stock exchange business, the FT said. The activist has encouraged the energy giant to consider launching a multibillion-pound share buyback once a £1 billion ($1.4 billion) tranche is completed and to focus on closing the gap on margins compared with rivals, it said.Article contentRepresentatives for Elliott and LSEG declined to comment. Article contentLSEG, having already endured a lackluster 2025, is among companies that have been caught up in the recent selloff in software stocks over concerns AI will make businesses redundant. Article contentIts share price had plunged about 20% since mid-January and 37% over the past year before details of Elliott’s investment became public. Article contentLSEG Chief Executive Officer David Schwimmer and his team have also been dealing with a drop in the volume of initial public offerings, with the exchange disappearing off the world’s 20 top IPO destinations last year.Article contentArticle contentOriginally known for its share-trading venue, LSEG built its data business with a landmark $27 billion acquisition of Refinitiv in 2021. Data and analytics accounted for more than 40% of the company’s revenue in its last earnings report. The stock became a selloff target after Anthropic PBC recently released its AI automation tools.Article contentGoldman Sachs Group Inc. analyst Oliver Carruthers has described the likely AI impact on LSEG as “limited.” He wrote in a note recently that just 6% of revenue — related to LSEG’s work flows business — carries some risk.Article contentBloomberg LP, the parent of Bloomberg News, competes with LSEG in providing financial data.Article contentTrending John Manley: Why Canada needs to play it cool on CUSMA — and keep its options open Economy The problem of the Toys 'R' Us $36-million gift card mountain Retail & Marketing BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation 'Escape hatches are gone': Power of sale listings surge in Toronto Real Estate As Cuba fuel crisis deepens, Canadians on the ground remain in vacation mode News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. John Manley: Why Canada needs to play it cool on CUSMA — and keep its options open Economy The problem of the Toys 'R' Us $36-million gift card mountain Retail & Marketing BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation 'Escape hatches are gone': Power of sale listings surge in Toronto Real Estate As Cuba fuel crisis deepens, Canadians on the ground remain in vacation mode News