BP Stock: Elliott's Big Move Shakes Investor Confidence

BP's stock soared 4.5% in London trading on Wednesday following news that activist investor Elliott Investment Management has increased its stake to over 5%. This significant position, valued at approximately £2.8 billion, was confirmed to have crossed the threshold on April 16, with Elliott holding its interest primarily through equity swaps.

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The activist's involvement signals growing dissatisfaction with BP's current direction under CEO Murray Auchincloss. Elliott is pushing for dramatic changes, demanding a 40% increase in annual free cash flow to $20 billion by 2027, while advocating for reduced investments in renewable energy ventures, particularly solar and offshore wind projects. This intervention comes at a critical time as BP's stock has fallen 18% since February's strategy announcement, which already included plans to cut spending on energy transition by more than $5 billion while focusing on its more profitable upstream business. The company continues to execute its share buyback program, purchasing 11.25 million shares at an average price of 358 pence each on April 22, even as market analysts question whether such buybacks can be maintained amid fluctuating oil prices.