LONDON (ShareCast) - (Sharecast News) - Activist investor Elliott Investment Management has acquired a significant stake in BP, it emerged over the weekend, adding pressure on the British oil major to reassess its strategy after years of underperformance.
The size of Elliott's stake was unknown, but according to Bloomberg, the fund was reportedly pushing for transformative measures to boost shareholder value.

BP's shares had struggled in recent years, trailing behind rivals like Shell and ExxonMobil, with investors voicing frustration over the company's financial underperformance, high debt levels, and a lack of strategic clarity.

Much of the dissatisfaction stemmed from former chief executive officer Bernard Looney's pivot toward green energy, a move that has yet to deliver the expected returns.

His successor, Murray Auchincloss, was now under growing pressure to refocus on BP's core oil and gas business.

Auchincloss, who took over after Looney's abrupt departure in 2023, had already initiated cost-cutting efforts, including workforce reductions and project cancellations.

He was set to present BP's new strategy on 26 February, where investors expected a clearer shift back to traditional fossil fuel operations.

However, BP warned of up to a $300m drop in quarterly profit due to weaker refining margins and maintenance activity.

Elliott, known for aggressive activist campaigns, has a history of pushing for corporate breakups and strategic overhauls.

The firm recently played a role in Honeywell's decision to split into separate entities and had taken stakes in Anglo American and Smiths Group.

Its move into BP came amid broader industry discussions about consolidation, with some analysts speculating that BP could become a takeover target.

BP was set to release its fourth-quarter earnings on 11 February.

"This is not the first time that an activist investor has targeted BP - Bluebell Capital Partners started to get vocal about BPs under performance last year, and it also called for heads to roll, including the chairman," noted XTB research director Kathleen Brooks.

"Like Bluebell, Elliott also wants BP to ditch its plans to reduce its fossil fuel reduction plans.

"The difference this time is that Elliott is better known than Bluebell and has a track record of forcing through the corporate changes that it wants."

Brooks said it was unknown how big its stake was, or exactly what its plans were for BP noting it could try to break the company up, or attempt to force a sale.

"BP's shares have risen by 10% so far this year, although they remain well below the highs from last April.

"This news may lead to a slight uplift at the start of the week.

"As mentioned, we do not think that Elliott has enough of a stake in BP yet to force a sale of the company, however, if there was a firm offer on the table for BP in the coming weeks, then the stock price could take off, in our view."

Reporting by Josh White for Sharecast.com.

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