(Bloomberg) – Elliott Investment Management has built a significant proportion in the BP PLC, according to people familiar with this issue, as the British oil major is fighting for the refund of investors’ confidence and reverse years of weaker effect.
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The activist fund wants to increase the value of the shareholders by pushing the company to consider transformative measures, people said, asking them not to identify themselves because the discussions are private. Elliott believes that BP is significantly underestimated and that his effect is disappointing, they said. The exact size of the role could not be learned immediately.
Representatives of Elliotta and BP refused to comment.
The BP has fallen around 8% in the last five years, while its large oil rivals from Shell PLC to Exxon Mobil Corp have increased by at least 30%. The company under former executive director Bernard Looney accepted the Net-Zero in the failed bet that oil consumption has peaked, and since then she has struggled to present a clear strategy for a reversal.
With a market value of about $ 86 billion, BP today is worth less than half of the shell.
Executive director Murray Auchincloss, an insider who stepped into the role after Looney was discharged because of his personal behavior, is widely expected to define a clearer shift towards oil and gas when it represents the long -awaited updating of the Strategy 26. February 26. However, investors are investors. They were becoming impatient, including after BP warned in October that his redemption was able to slow down this year.
The BP should report on Tuesday about financial results in the fourth quarter, and has already marked a wide weakness in its business for that period. Although his greatest rivals have also reported lower earnings in the last three months of the year, analysts consider these companies as a clearer direction and stronger balance sheets.
Elliott’s move is the latest in a series of high activists who have taken over the Big Oil. Exxon lost the battle with the ESG engine no. 1 2021, while Dan LoeB’s third point of LLC took the share in Shell the same year, urging the company to break its liquefied natural gas, renewable sources and marketing divisions into a independent job.
Elliott has been successfully advocating for a breakup in Honeywell Inc. Inc., which has announced this week that it will be divided into separate public commercial companies. The Fund also discovered a share of Anglo American PLC last year during an attempt by the BHP Group to get a miner based in London.
