Elliott said to have built 'significant' stake in LSEG, shares spark

(Sharecast News) - Shares of London Stock Exchange Group sparked on Wednesday following a report that activist hedge fund Elliott Management has built a "significant" stake in the company. According to the Financial Times, citing people familiar with the matter, Elliott has been engaging with LSEG to help engineer an improvement in the group's performance.

Last week, LSEG shares were caught up in a broader selloff of data and software companies amid concerns about the impact of new AI tools.

The FT said the exact size of the stake could not be ascertained and that Elliott and LSEG declined to comment.

Ahead of the release of its annual results later this month, Elliott has encouraged the company to consider launching a multibillion-pound share buyback once a £1bn tranche is completed and to focus on closing the gap on margins compared with rivals, according to FT sources.

Elliott has previously pushed for companies to simplify their corporate structure to boost performance. However, FT sources said Elliott does not want LSEG to consider a full sale or a spin-off of its stock exchange business.

At 0810 GMT, LSEG shares were up 4.7% at 7,714p.