London Stock Exchange Group (LON: LSEG) shares swung sharply on Wednesday after reports that activist investor Elliott Management has built a position in the company.
The stock jumped at the open, rising to 7,880p, before giving up most of those gains to close just 0.19% higher at 7,382p.
The Financial Times first reported that Elliott has accumulated a meaningful stake and has held discussions with LSEG over ways to improve performance.
According to the report, the hedge fund has urged the group to consider a new share buyback programme and take steps to narrow the gap with global rivals.
The move comes during a challenging period for LSEG’s share price. The stock has fallen more than 36% over the past year amid worries that artificial intelligence could pressure revenue at its data and analytics division, which now generates nearly half of group income following the 2021 takeover of Refinitiv.
Investor concerns intensified earlier this month after U.S. AI firm Anthropic launched a legal-focused tool that some fear could compete with LSEG’s data offerings.
Wednesday’s brief surge highlighted how sensitive the shares are to speculation about strategic changes or activist involvement.
The Guardian reported that Elliott’s engagement reflects a broader push by the fund to target underperforming UK companies.
LSEG reportedly said it maintains an “active and open dialogue” with shareholders while focusing on delivering its long-term strategy.
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