David Schwimmer was a mergers and acquisitions banker at Goldman Sachs Group Inc. before becoming boss of the company that owns London’s stock exchange. Now activist hedge fund Elliott Management Corp. is parked in his drive, he needs to think like a banker again.

London Stock Exchange Group Plc is a risky target for investor activism. It’s big, with a market value of £38 billion ($52 billion). And it remains a British icon even though moves into data and indexes have diluted the commercial significance of its share-trading revenue. Elliott has to find big prey given the size of its $80 billion fund. But the high-stakes dynamic makes it critical for billionaire Paul Singer’s firm that LSEG has untapped upside that can be released through pressure on the boardroom.

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