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Activist Elliott Pushes LSEG for More Value
28 Feb
Summary
- Elliott Management demands further value-enhancing actions from LSEG.
- LSEG announced a £3 billion share buyback following a bullish update.
- LSEG shares are down by a quarter over the past year.
Elliott Management has increased pressure on London Stock Exchange Group (LSEG) CEO David Schwimmer, calling for additional 'value-enhancing' actions. The activist investor, led by billionaire Paul Singer, publicly stated its position for the first time since acquiring a stake in LSEG.
This move follows LSEG's recent bullish results update, which included a £3 billion share buyback. Despite the positive announcement, which boosted shares, the buyback fell short of a reported £5 billion demand from Elliott.
Elliott acknowledged LSEG's buyback and profit margin initiatives as positive steps but indicated that further actions are needed. The investor aims for a 'constructive dialogue' to unlock LSEG's full potential and address its valuation gap compared to competitors.
A spokesperson for LSEG affirmed the company's active dialogue with investors while maintaining focus on its strategic execution. LSEG shares have seen an increase following the results, though they are down 25% over the past year.
