Elliott Management amasses £3.8bn stake in BP, pushes for strategic overhaul

Elliott Management has become the third-largest shareholder in BP, acquiring a stake valued at nearly £3.8 billion, or approximately 5% of the company. The activist hedge fund is expected to push for significant changes, including a reduction in spending on renewable energy and potential divestments from green assets, aiming to address what it perceives as BP's undervaluation. BP's CEO, Murray Auchincloss, has acknowledged the need for a 'fundamental reset' of the company's strategy in response to pressure from Elliott, as profits fell to a four-year low last year. Experts suggest that Elliott may also demand a boardroom overhaul, potentially targeting the removal of current leadership, including chairman Helge Lund. This move follows a broader trend in the oil and gas sector, where companies are reevaluating their green commitments in light of market pressures. BP's recent performance has been notably poor, losing nearly a quarter of its market value over the past two years, further intensifying the call for change.