London, May 18, 2026, 16:04 (BST)
Legal & General Group shares edged higher in late London trade on Monday, keeping takeover speculation in view rather than delivering a fresh rally. LGEN was at 265.70 pence at 16:01 BST, up 0.34%, after trading between 260.30p and 266.00p on volume of 10.33 million shares, Google Finance data showed. Google
The timing matters because the Financial Times returned to the story on Monday, saying private capital firms were circling L&G after a difficult period in which tight credit spreads — the extra yield on corporate debt over government bonds — and new entrants have squeezed profits in its core market. The FT item said analysts are questioning whether L&G’s dividend can be sustained and whether it can remain public. Financial Times
This is not just loose M&A chatter around a cheap-looking stock. Sharecast, summarising the FT report, said potential bidders had considered a full takeover, though such a deal would be difficult and politically sensitive because of L&G’s size and its large holdings of gilts, or UK government bonds. It also said private capital executives had floated options including a partner for some pension risk transfer assets, a path rival Standard Life has explored. Sharecast
Chief Executive António Simões has tried to shut down the sale line. He told the FT he was not considering a break-up or sale and was “100% focused on executing my strategy”; in separate quoted remarks, he added: “There’s no discussions or anything else going on.” London South East
The shares had jumped more than 5% on Thursday after Reuters reported that the FT had cited possible buying interest while quoting Simões as saying the company was not considering a sale. Monday’s quieter move leaves investors testing whether any takeover premium can hold without a formal process. Reuters
L&G is not small or simple to carve up. Its businesses span Institutional Retirement, Asset Management, Insurance, Retail Retirement and Corporate Investments, and its institutional retirement unit includes pension risk transfer, where a company pays an insurer to take responsibility for pension promises made to scheme members. Reuters
Management’s counter is cash return and execution. In March, L&G reported 9% growth in core EPS — earnings per share from core operations — and announced a 1.2 billion pound share buyback, meaning the company repurchases its own stock; Simões said then that L&G had made “meaningful progress in reshaping” the business.
Income remains the hook for many holders. L&G’s board says it intends to grow the dividend per share by 2% after 2024, while Investing.com put the dividend yield — annual payout as a percentage of the share price — at about 8.23%. Legal & General Group
But the trade is not clean. Simões says there are no discussions, any full takeover would face political and execution risk, and the macro tape can move against UK financials fast; Mohit Kumar, chief economist at Jefferies, told the Guardian bond investors were worried about a “shift to the left” in UK policy, while XTB’s Kathleen Brooks said the key test for UK markets was whether the 10-year gilt yield could fall below 5%. The Guardian
The wider index helped the tape. Separate delayed Hargreaves Lansdown data showed the FTSE 100 at 10,325.21, up 1.27%, leaving L&G lagging the benchmark despite the takeover angle. Hl
