BP Shares Surge 7% on Activist Investor Stake
BP's shares soared 7% on Monday, hitting their highest level since August after it was reported that activist investor Elliott Management has acquired a stake in the company. The development has fueled speculation about potential changes in BP's strategy.
Elliott, known for its push to boost shareholder value, is believed to have acquired a "significant" stake in BP. While the exact size of the stake was not disclosed, BP and Elliott have declined to comment.
The news sent BP shares up 7.3% to 464.75 pence, marking their largest daily gain since February 2023. The surge reflects the market's anticipation of potential changes in BP's operations under Elliott's influence.
Analysts believe that Elliott may call for changes in the company's leadership, including the departure of Chairman Murray Auchincloss. Auchincloss has faced criticism for BP's underperformance compared to its peers, such as Shell and ExxonMobil.
Elliott is reportedly pushing BP to consider transformative measures, including potentially splitting up its core oil and gas segment to focus on growth areas related to the energy transition. This move could help reduce capital investment in the company's traditional operations.
The developments surrounding BP and Elliott Management will likely continue to shape the company's strategy and performance in the coming months.