(Bloomberg) – Elliott Investment Management has built up an important interest in BP PLC, according to people who are familiar with the case, because British oil – large struggles to recover the trust of investors and to return years of under performance.
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The activist fund tries to encourage the shareholder value by encouraging the company to consider transforming measures, the people who did not ask for not being identified because the discussions are private. Elliott believes that BP is considerably undervalued and their performance is disappointing, they said. The exact size of the post could not be learned immediately.
Representatives of Elliott and BP refused to comment.
BP has fallen by around 8% over the past five years, while its large oil rivals from Shell PLC to Exxon Mobil Corp have risen by at least 30%. The company under former Chief Executive Officer Bernard Looney embraced Net-Nul in a failed bet that the oil consumption had reached a peak and since then has trouble presenting a clear strategy for a reversal.
With a market value of around $ 86 billion, BP is worth less than half of Shell today.
CEO Murray Auchincloss, an insider who stepped into the role after Looney was fired over his personal behavior, is generally expected to return a clearer shift to oil and gas when he presents a long-awaited strategy update on 26 February. have become impatient, even after BP had warned in October that the stock buying could delay this year.
BP is planned to report financial results in the fourth quarter on Tuesday and has already marked wide weakness in his company for the period. Although the biggest rivals also reported a lower income in the last three months of the year, analysts consider those companies to be a clearer direction and stronger balance sheets.
The movement of Elliott is the newest in a series of high -profile activists who take big oil. Exxon lost a fight to ESG-Leaning Engine No. 1 in 2021, while then Loeb’s Third Point LLC took an interest in Shell in the same year and called on the company to break down its liquid natural gas, renewable energy sources and marketing departments in a standalone company.
In recent months, Elliott has successfully demonstrated a break at Honeywell International Inc., which announced this week that it would be split into individual listed companies. Last year, the fund also unveiled an interest in Anglo American PLC during the BHP Group attempt to acquire the London -based miner.