Activist Elliott Said to Build Stake in Struggling Oil Major BP

Activist investor Elliott Investment Management is reportedly building a significant stake in oil major BP (BP.L), according to a Bloomberg News report on Saturday. The move comes as BP faces pressure from some shareholders to raise its profitability and narrow the valuation gap with more oil-focused U.S. rivals.

BP, led by CEO Bernard Looney, has been shifting its focus away from fossil fuels and towards renewable energy since 2020. However, the company has faced criticism from some investors who believe it should prioritize short-term profitability over long-term sustainability goals. Elliott's involvement could signal a push for more aggressive changes within the company.

Elliott Investment Management is known for its activist approach to investing, often taking stakes in underperforming or undervalued companies and pushing for changes in management, restructuring, and asset sales. The firm has a history of successful campaigns, including the sale of Hess Corporation's refining business and the removal of Twitter's CEO Jack Dorsey.

BP's share price has been volatile in recent years, reflecting the broader challenges facing the oil and gas industry. The company's net sales break down by activity as follows: refining and distribution (76.1%), exploration and production of hydrocarbon (23.6%), and other (0.3%). Geographically, net sales are distributed between the United States (28.8%) and other regions (71.2%). The company employs 87,800 people worldwide.

Elliott's involvement in BP could lead to a more aggressive push for change within the company, potentially including a review of its strategic focus, asset sales, or even a change in management. However, the outcome of Elliott's involvement remains uncertain, and the company's future direction will depend on the support of other shareholders and the willingness of BP's management to engage with Elliott's proposals.




BP's share price has been volatile in recent years, reflecting the broader challenges facing the oil and gas industry. The company's net sales break down by activity as follows: refining and distribution (76.1%), exploration and production of hydrocarbon (23.6%), and other (0.3%). Geographically, net sales are distributed between the United States (28.8%) and other regions (71.2%). The company employs 87,800 people worldwide.

Elliott's involvement in BP could lead to a more aggressive push for change within the company, potentially including a review of its strategic focus, asset sales, or even a change in management. However, the outcome of Elliott's involvement remains uncertain, and the company's future direction will depend on the support of other shareholders and the willingness of BP's management to engage with Elliott's proposals.