Activist hedge fund Elliott Management has increased its stake in BP, the struggling oil major. The move is seen as an attempt by the firm to influence BP’s direction and drive change.
Elliott, known for its activist investing strategies, acquired a 9.2% stake in BP in January. The firm’s investment in BP is expected to put pressure on the company’s board of directors to implement structural changes and improve its performance.
BP has been struggling with declining oil prices and increasing competition in the global energy market. The company has faced criticism for its slow response to the changing market conditions, leading to a decline in its stock price.
Elliott’s move is also seen as an opportunity for the firm to promote sustainable energy solutions and reduce BP’s carbon footprint. As an activist investor, Elliott often targets companies that have the potential to be transformed into more resilient and profitable businesses.
The exact terms of Elliott’s investment are not disclosed, but industry experts expect the firm to use its stake in BP to push for significant changes at the company.
Source: https://www.ft.com/content/0fe68734-0a90-4824-ba84-8a3cd39a0bc3