Let us know about free updates
Simply sign up for Myft Digest in the oil and gas industry and it will be delivered directly to your inbox.
Activist hedge fund Elliott Management has built its stock into the struggles of UK oil major BP, according to two people with knowledge of the move.
Although the exact size of Elliott’s stocks could not be learned, the $70 billion assets under the managed hedge fund have been adjusting activist strategies in recent years to increase the size of individual bets, and it is focused on We have reduced the number of situations where we are trying to get the test.
BP stocks have fallen nearly 9% over the past year, with investors suffering from financial misperformance of the company, high levels of debt and lack of strategic clarity compared to a 6.5% increase in rival shells. He complains about.
Over the past few weeks, speculation has been circulating in the London market that BP is vulnerable to buyback bids or activist shareholders.
Pressure from US investors can refocus BP on its core oil and gas business after building an empire of green energy projects over the years.
One BP investor suggested that Elliott could seek a complete breakup or that the company could cut back from some of its weak businesses and relist it in the US.
Other activist funds have recently been considering accumulating BP’s stakes, but the size of the £70 billion company has blocked them. One US activist who came up with the move said BP’s board had “sleeping on the wheels” and “a confused strategy.” “The upstream business of BP itself justifies the overall market value.”
Both BP and Elliott declined to comment.
BP will report its quarterly results on Tuesday and update investors on its medium-term strategy on February 26th.
The company’s CEO, Murray Autincross, moved from New York to London after delaying the update and receiving private medical procedures.
Elliott is led in the UK and Europe by Gordon Singer, the son of Paul Singer, the company’s founder. The company targets companies such as the UK-listed mining groups Anglo American and Pharmaceutical Giant GSK.
The company is well known as a horrible activist investor who is willing to fight the boardroom battle if they disagree with the company’s strategic direction.
Earlier this week, the FT reported that Elliott is supporting plans to build a nearly 5% stake in the UK-listed conglomerate Smith Group, selling or demarging two of the four units.
Just three months after Elliot launched a campaign to achieve that result, the company announced plans to split on Thursday, resulting in a major victory at US conglomerate Honeywell this week.
BP’s Elliott stock was first reported by Bloomberg.
Additional Reports by Jamie Smith of New York
