Elliott builds a stake in the amount of £ 4 billion in BP -Ui asking for sale of large assets
Unlock free Digest editor
Roula Khalaf, editor of FT, chooses her favorite story in this weekly newsletter.
The Elliott Management Fund’s activist Hedge Fund has become the third largest shareholder of BP after building almost 5 percent of the value of almost £ 3.8 billion, as it seeks to force the problematic British oil to reduce renewable sources and execute great seizures, the statement states In two people close to the situation.
The position is one of the largest US funds and could include shares as well as derivative positions that replicate economic interest in shares, the tool that Elliott used in past campaigns.
Only Blackkck and Vanguard play larger roles in FTSE 100 Energy Major, at 9 percent and 5 percent.
Since 2020, the BP has increased the consumption of transition companies with about 3 percent of its capital expenditures to 30 percent, or approximately $ 5 billion a year, building a portfolio, including wind, solar, biofuels and hydrogen.
This is a bad use of capital, and the BP should restrict its future consumption on renewable sources and sell wide property, said the person familiar with Elliott’s thinking.
The BP was difficult in 2024, and the proportions fell approximately 30 percent between April and December due to poor financial and operational effect, as well as a perceived lack of strategic clarity from executive director Murray Auchincloss.
However, the shares have increased by 16 percent this year, as the market is speculated that the assessment of the company would be deduced by an activist investor or even a supply offer.
The news of Elliott’s involvement was broken on Saturday, and Auchincloss promised the “fundamental reset” strategy of the BP as he announced another set of disappointing results on Tuesday. BP should discover its plans on the day of the capital market on February 26.
It is not yet clear whether these plans will be enough to satisfy the Hedge Fund. Elliott hopes to see an aggressive chair that supports an engaged committee committing to reset, to people who are familiar with this issue.
Elliott’s campaign is run by John Pike, who specializes in energy and industrial investment, and Gaurav Toshniwal, a portfolio manager focused on energy in London.
Pike has launched several previous campaigns in the US oil companies Hess and Marathon, Canadian oil sand producer Suncor and the Phillips 66 refineries.
Elliott revealed earlier this week that he increased his share in Phillips 66 and called on the company to start selling his pipeline and chemical assets. Pike is also responsible for Elliott’s position in the Anglo -American, mining group FTSE 100 UK.
A person familiar with Elliott’s thinking said the Hedge Fund was ready to be a long-term carrier of BP shares, noting that the campaigns in Hessa and marathon lasted between six and eight years.
