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Elliott Backs LSEG's Share Buyback, Sees Undervaluation

  //stocks-investing.news-articles.net/content/202 .. ks-lseg-s-share-buyback-sees-undervaluation.html
  Published in Stocks and Investing on Friday, February 27th 2026 at 9:29 GMT by reuters.com
      Locales: UNITED KINGDOM, UNITED STATES

LONDON - February 27th, 2026 - Elliott Investment Management, a prominent activist investment firm, has publicly voiced its strong support for the London Stock Exchange Group's (LSEG) recently announced GBP1.4 billion ($1.8 billion) share buyback program. In a filing made public on Thursday, Elliott not only affirmed its backing of the immediate capital return plan but also signaled a broader belief that LSEG possesses substantial, currently unrealized value. This endorsement comes at a critical juncture for the LSEG as it continues its integration of Refinitiv, a complex and ambitious undertaking finalized in January 2021.

The buyback program, announced last month, aims to return capital to shareholders, a move generally interpreted as a signal of financial strength and confidence in future prospects. Elliott's public support amplifies this message, lending further credibility to LSEG's strategic direction. However, the activist investor's statement goes beyond simple approval; it explicitly states that the company's stock is currently undervalued by the market. This assessment suggests Elliott believes that LSEG's current trading price does not adequately reflect its intrinsic worth, particularly considering the potential benefits stemming from the Refinitiv integration.

Elliott's stake in LSEG is significant, currently standing at 0.94%, making it one of the exchange group's largest shareholders. This substantial holding provides Elliott with considerable influence and incentivizes its active engagement with the company's management. While a 0.94% stake might not constitute controlling ownership, it's large enough to command attention and potentially drive strategic changes.

Refinitiv Integration: The Key to Unlocking Value?

The acquisition of Refinitiv was a transformative deal for the LSEG, expanding its data and analytics capabilities and positioning it as a major player in the financial data space. However, integrating such a large and complex business has proven to be a lengthy and challenging process. Elliott's assessment clearly indicates that the firm believes further optimization within the combined entity is possible. Specifically, Elliott highlights opportunities to improve efficiency and strategically refine initiatives already underway. This suggests the firm might push for restructuring, cost-cutting measures, or a refocusing of resources towards the most promising growth areas within the group.

Calls for Increased Capital Returns

Beyond supporting the current buyback, Elliott has urged the LSEG to explore additional avenues for returning capital to shareholders. This signals a desire for more aggressive financial policies, potentially including increased dividend payouts or further share repurchase programs. The firm appears to believe that LSEG has the financial capacity to allocate more capital towards shareholder returns without jeopardizing its long-term growth prospects. This is a common tactic employed by activist investors seeking to unlock value for shareholders in companies they deem undervalued.

Implications for the Market and LSEG's Strategy

Elliott's intervention is likely to put pressure on the LSEG's management team to deliver on its promises and demonstrate tangible progress in realizing the synergies from the Refinitiv acquisition. The market will be watching closely to see how the company responds to Elliott's demands and whether it adopts any of the suggested changes. A positive response could lead to a re-evaluation of LSEG's stock price and potentially trigger a rally. Conversely, resistance to Elliott's proposals could lead to further scrutiny and potentially a more hostile engagement.

The LSEG is navigating an increasingly competitive landscape within the financial data and exchange services industry. Competition from Bloomberg, FactSet, and newer fintech disruptors is intensifying, forcing all players to innovate and enhance their offerings. Elliott's focus on efficiency and strategic initiatives underscores the importance of adapting to this changing environment.

Furthermore, the global economic outlook adds another layer of complexity. Concerns about inflation, interest rate hikes, and geopolitical instability are weighing on investor sentiment. In this environment, companies like LSEG are under pressure to demonstrate resilience and deliver consistent returns. Elliott's backing, while positive, won't shield LSEG from these broader macroeconomic challenges.

In conclusion, Elliott Investment Management's public support for the LSEG's buyback program and its belief in the company's undervalued potential sets the stage for a potentially dynamic period for the exchange group. The coming months will reveal whether LSEG can successfully capitalize on the opportunities identified by Elliott and deliver enhanced value to its shareholders.