Elliott takes up £3.8bn stake in BP
Notorious activist investor Elliott Management has taken up a £3.8bn stake in BP, becoming the ailing oil major’s third-largest shareholder, according to reports.
The US fund’s investment in the London-listed petrochemical giant emerged last weekend, shortly before BP reported an anaemic set of full-year results that saw its profit slump to $8.9bn (£7.9bn).
The earnings were the latest evidence of the tricky straits the oil group finds itself in after years of underperformance relative to its major US and European competitors.
BP’s share price has risen just 1.2 per cent in the past five years, compared with Shell’s 37 per cent and Chevron’s 41 per cent. Between April 2024 and January 2025, BP shares fell by over 28 per cent.
Elliott’s stake
The size of Elliott’s stake – which equates to nearly five per cent of BP’s overall and prompted the oil major’s stock to nudge down one per cent – will pile further pressure on under-fire boss Murray Auchincloss to go further and faster with his firm’s long-trailed strategic overhaul.
The reset is set to be unveiled at the firm’s delayed capital markets day on 26 February, at which the oil giant is expected to renege on ambitious renewable and climate commitments made under Auchincloss’s predecessor, Bernard Looney.
Since the start of 2020, BP has raised its spending on energy transition activity – including wind power and controversial carbon capture technology – from three per cent to 30 per cent.
In doing so, it became a net zero outlier among its competitors, almost all of which have taken a more gradual approach to their respective moves away from fossil fuels.
Elliot’s holding means that only US investment behemoths Blackrock and Vanguard own more BP stock and likely lays the ground for a turbulent period for BP leadership.
Alongside Nelson Peltz’s Trian, the Paul Singer-led fund has earned a reputation as one of the world’s most notorious activist investment shops, taking up large holdings in companies before forcing through strategic and personnel changes.
It has previously pushed through aggressive overhauls at the likes of Starbucks, Waterstones and the budget domestic US carrier Southwest Airlines, where it got into a lengthy spat with the travel group’s leadership over sweeping changes to its board.
The fund’s top brass view BP’s renewable-focused capital expenditure to have been misguided and profligate, according to the Financial Times, and hope the firm’s board will energetically support the “fundamental reset” promised by Auchincloss.
Elliott Management was contacted for comment.