Activist investor Elliott builds up stake in London Stock Exchange Group

Core Viewpoint - Elliott Management has acquired a significant stake in the London Stock Exchange Group (LSEG) and is engaging with the company to enhance its performance amid challenges such as reduced listings and potential disruptions from artificial intelligence [1]. Group 1: Elliott Management's Stake and Engagement - Elliott's exact shareholding in LSEG remains unclear, but the fund is in discussions with LSEG to encourage improvements, including a potential share buy-back to better compete with rivals [2]. - LSEG's shares experienced a rise of up to 6% in early trading following news of Elliott's involvement, although they later fell back slightly [2]. Group 2: LSEG's Business Model and Financial Performance - LSEG, primarily known for operating the London Stock Exchange, has shifted focus, with nearly half of its revenues now coming from its data and analytics division after acquiring Refinitiv in 2021 [3]. - The company's share price has decreased by over 35% in the past year, with a notable drop of 13% earlier this month due to concerns about AI's impact on its data business [4]. Group 3: Market Context and Competitive Landscape - The launch of an AI tool by US startup Anthropic has raised investor fears regarding its potential negative effects on LSEG's data business [4]. - Despite challenges, there has been a slight increase in the number of businesses opting to list in London, although concerns persist about the overall reduction in the number of public companies in the UK due to takeovers and delistings [6].