Home / Business and Economy / Elliott Targets LSEG: Stakeholder Urges Sale of New York Unit
Elliott Targets LSEG: Stakeholder Urges Sale of New York Unit
20 Feb
Summary
- Activist investor Elliott urges LSEG to review operations.
- Sale of New York-listed bond trading arm Tradeweb is considered.
- LSEG shares fell 33% due to AI disruption fears.
London Stock Exchange Group (LSEG) is facing significant pressure from activist investor Elliott Management to enhance its performance. Elliott, which has acquired a stake in the British company, is advocating for a comprehensive review of LSEG's operations. This review could result in the sale of Tradeweb, LSEG's New York-listed bond trading subsidiary.
Tradeweb, a fixed-income trading platform in which LSEG holds a majority stake acquired via the Refinitiv purchase, is valued at £18.5 billion. Selling this holding is seen as a potential method for LSEG to generate cash, especially after a 33% fall in its shares over the past year.
The company's stock has also been affected by broader market concerns regarding artificial intelligence (AI). Recent fears that AI technology could disrupt LSEG's data and analytics business, following the release of a new AI tool by Anthropic, caused a significant drop in its share price.
LSEG's CEO, David Schwimmer, is anticipated to address these concerns, including Elliott's proposals and the impact of AI, during the group's upcoming full-year results announcement. Analysts suggest Elliott's involvement could be beneficial, potentially leading to operational improvements and strategic adjustments.
