The world’s most feared investor just opened a new front in London.
Elliott Management (AUM: ~$80B) has built a stake in the London Stock Exchange Group (LSEG), engaging with management to close the valuation gap with rivals. Unlike their typical “break-up” playbook, sources suggest Elliott is not seeking a sale or spin-off, but rather pushing for aggressive share buybacks and sharper operational focus.
🌍 THE CURRENT HIT LIST: Paul Singer’s firm is currently active across almost every major geography and sector.
- 🇬🇧 LSEG: Pushing for a “fresh share buyback” to boost stock performance, rejecting a full breakup.
- 🇯🇵 Toyota Industries: Fighting a “lowball” take-private bid (18,800 yen/share), arguing it undervalues minority shareholders.
- 🛢️ BP: Pressing the energy giant to pay down debt and simplify operations to reverse years of underperformance.
- 🏭 Honeywell: Successfully pushed for a conglomerate break-up (splitting into three listed cos).
- ✈️ Southwest Airlines: Secured 5 board seats in a settlement—the most ever for an activist in the US—while keeping the CEO.
- 🥤 PepsiCo: Demanded an operational review, leading to aggressive cost-cutting in the North American supply chain.
⚔️ THE STRATEGY: Elliott’s tactics are evolving.
- Flexibility: They are pragmatic, not dogmatic. For Honeywell, the answer was a split. For LSEG, the answer is unity + execution. For Southwest, it was governance reform.
- Valuation Discipline: Whether it’s opposing Aspen Tech’s deal with Emerson or fighting Toyota’s tender offer, Elliott is increasingly acting as the “price police” for M&A.
💡 ANALYST TAKEAWAY: Elliott is effectively acting as an uninvited “Global Management Consultant” with a $80B checkbook. Their involvement in LSEG signals that they see the UK’s premier financial infrastructure asset as fundamentally undervalued relative to US peers. With successful campaigns at Phillips 66 and BHP (forcing the oil exit) in the rearview, boards are learning that when Elliott shows up, the status quo is already over.
👇 governance Pros: Is Elliott’s “constructive” approach at LSEG a sign of a softer strategy, or just a different tactic for a regulated asset?