One of the world’s most aggressive activist investors is reported to have amassed a stake in BP, fuelling speculation that the FTSE 100 energy giant will come under pressure to consider a break-up or full sale.
The Times reports that the move by Elliott Management, the American hedge fund, comes at a crunch time for BP boss Murray Auchincloss, who is expected to report underlying fourth-quarter profits of $1.26billion this week, down from $3billion a year earlier.
BP will also publish an update on its broader strategy on February 26 - and Elliott reportedly wants the firm to consider “transformative” measures to boost shareholder value, according to Bloomberg, which was first to report the hedge fund’s stake-building.
The size of Elliott investment is unknown. The fund has a long track record of successfully shaking up the companies it targets and its decision to train its sights on BP will raise expectations that Mr Auchincloss could face calls to pursue a significant change of strategy.
There has already been speculation in the stock market that BP risks being taken over, with Abu Dhabi’s state oil company Adnoc tipped as a possible buyer last April. Shell has also been mooted in the past as a potential suitor.
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