British Energy Giant BP Soars After Activist Hedge Fund Stakes
BP shares surged by 8% following the revelation that activist hedge fund Elliott Investment Management had acquired a stake in the company. The announcement was made over the weekend, with the exact size of the stake remaining undisclosed.
Elliott, headed by renowned investor Paul Singer, is known for its aggressive advocacy for change within its portfolio companies. Notably, in 2024, Elliott successfully pushed Southwest Airlines to implement significant profit-enhancing business alterations, including the discontinuation of its longstanding unassigned seating policy.
Analysts speculate that Elliott may push for a split of BP's oil and gas operations from its renewable energy initiatives, as well as potential management changes.
The news comes amidst BP's recent share price decline of over 10% in 2024. The company has faced challenges in balancing its traditional fossil fuel businesses with renewable energy expansion.
BP's previous CEO, Bernard Looney, resigned in 2023 after accusations of misleading the board about staff relationships. Current CEO Murray Auchincloss has implemented cost-cutting measures, including the recent announcement of job eliminations.