Elliott Investment Management is ramping up pressure on BP Plc after its new strategy fell short of the activist investor’s expectations, people with knowledge of the matter said.
Elliott Investment Management is intensifying its pressure on BP, as its new strategy has fallen short of the activist investor's expectations. Elliott, holding nearly 5% of BP's shares, criticizes the lack of urgency and ambition in CEO Murray Auchincloss's turnaround plan, which includes reversing the reduction of oil and gas production, cutting low-carbon investments, and selling $20 billion in assets by 2027. The company is beginning with a strategic review of Castrol lubricants, potentially worth $10 billion. Elliott may push for changes in BP's management and board if dissatisfied. Additionally, Elliott is demanding significant cost cuts and layoffs, with Auchincloss planning to lay off 5% of employees. BP's shares initially dropped after the strategy unveiling but later rose following news of Elliott's reaction. The strategy aims to address BP's underperformance and deliver a new vision.
