BP shares soar after US activist Elliot builds up stake in fresh blow to boss Murray Auchincloss

By JESSICA CLARK

Updated: 22:01 GMT, 10 February 2025

BP shares soared yesterday after activist investor Elliott took a stake in the group.

The FTSE 100 energy giant’s stock hit a seven-month high on speculation that the New York hedge fund will demand sweeping changes at the company to boost its value.

It is thought Elliott could push for a break-up of BP, an overhaul of its leadership team or a sale.

The move piles pressure on boss Murray Auchincloss to focus on fossil fuels and cut investment in renewables.

BP reports fourth quarter results today and is preparing for a highly anticipated strategy update later this month.

Investors have grown frustrated with the London-listed giant’s underperformance compared to rival Shell.

Frustration: BP chief exec Murray Auchincloss (pictured) is under pressure to focus on fossil fuels and cut investment in renewables

Auchincloss is also facing calls to close the valuation gap with American competitors Chevron and ExxonMobil, which have doubled down on profitable oil and gas.

Shareholders want the Canadian to scrap the green agenda spearheaded by his predecessor Bernard Looney, who left in disgrace after undisclosed relationships with employees.

‘The window for Murray Auchincloss to convince the market he has a plan to revive BP’s fortunes just got shorter with reports that activist investor Elliott has joined the shareholder base,’ said Russ Mould, investment director at broker AJ Bell.

It is not the first time an activist investor has targeted BP. London-based Bluebell Capital Partners set its sights on the company last year, calling for chairman Helge Lund to step down and for green targets to be cut.

Shares jumped 7.4 per cent to 465.15p after reports of Elliott’s investment.

The size of its position has not been disclosed.

The American investor was handed a victory last week when US industrial conglomerate Honeywell announced plans to break itself up following an Elliott campaign.

Mould added: ‘Elliott might push for the company to stop allocating capital to existing renewables and clean energy projects and potentially exit them entirely. 

Breaking up the business might seem logical to Elliott as it is oil and gas production which delivers the cash flow to help pay this bills and fund dividends. 

A shift in the primary stock market listing to the US could even be on the cards, although that might be politically complicated.’

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BP shares soar after US activist Elliot builds up stake in fresh blow to boss Murray Auchincloss

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