Activist hedge fund Elliott Management has acquired a stake in BP, raising speculation that the struggling UK oil giant could face pressure to scale back its green energy initiatives and refocus on its core fossil fuels business. Sources familiar with the matter revealed that Elliott, known for its aggressive activist campaigns, has been increasing its bets on major companies while narrowing its focus.
According to the Financial Times, Elliott has a history of targeting large corporations to push for strategic overhauls. The firm recently influenced the breakup of US conglomerate Honeywell and has taken a sizable stake in Smiths Group, advocating for divestments. BP investors now speculate that Elliott may call for a breakup or push for a U.S. relisting to unlock more value.
BP has struggled financially compared to rivals, with its shares down nearly 9% over the past year, while competitor Shell has gained 6.5%. Investors have criticized BP for its underperformance, high debt, and lack of clear direction. Some believe the company’s renewable energy expansion has weakened its profitability, making it an attractive target for activist intervention.
BP’s leadership is set to report quarterly earnings on Tuesday and provide a medium-term strategy update on February 26. CEO Murray Auchincloss, who recently postponed the update due to medical reasons, will now face mounting pressure to clarify BP’s direction amid Elliott’s involvement.
