Elliott Urges Portfolio Review and £5 Billion Buyback at London Stock Exchange Group

Activist investor Elliott Investment Management is reportedly pressing London Stock Exchange Group to undertake a strategic review of its business and launch a £5 billion share buyback over the next year, according to reports circulating in financial markets. The move comes shortly after it emerged that Elliott had built a stake in the company and begun discussions with management about improving shareholder returns.

Shares in London Stock Exchange Group have fallen more than 30 per cent over the past 12 months, weighed down in part by a broader global selloff in technology and software stocks. The company’s diverse structure, which includes exchange operations, a large data and analytics division, and a 51 per cent stake in US-listed Tradeweb Markets, has also drawn scrutiny from investors seeking clearer growth visibility.

Elliott is said to be encouraging the company to review its portfolio and assess whether its current configuration maximises value. The activist fund reportedly believes that a significant buyback programme would demonstrate confidence in the business while supporting the share price during a period of market volatility. A £5 billion repurchase would represent a substantial capital return to shareholders and signal a more aggressive approach to balance sheet management.

The London Stock Exchange Group has transformed significantly in recent years, particularly following its acquisition of Refinitiv, which strengthened its data and analytics capabilities. Data services now account for a major share of revenue and are seen as central to its long term strategy. However, some investors have questioned whether the complexity of its structure makes it harder for the market to fully recognise the value of its individual components.

Reports suggest that Elliott is also urging the company to better communicate how its data platform could benefit from the rapid growth of artificial intelligence applications. As AI systems increasingly rely on high quality financial data for modelling, risk management and trading strategies, LSEG’s data assets could play a more prominent role in supporting that demand. Clearer messaging around this potential may help narrow the valuation gap with global peers.

In addition to capital returns and investor communication, Elliott is believed to be pushing for operational improvements aimed at boosting margins. While there has been no indication that the fund is seeking a break up or sale of the business, it appears focused on enhancing efficiency and sharpening strategic priorities.

The London Stock Exchange Group has stated that it maintains regular dialogue with shareholders while remaining committed to executing its long term strategy. Market participants will now be watching closely for any formal announcement regarding capital allocation plans or structural changes, particularly as investor activism becomes more visible within the UK’s flagship financial institutions.