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The Elliott Management’s hedge fund has built participation in the difficulty of the BP in British oil difficulty, according to two people knowing the move.
The exact size of Elliott’s participation could not be learned, but the assets of $ 70 billion under the direction of the hedge fund have adjusted its activist strategy in recent years to increase the size of its individual bets, While reducing the number of situations on which it concentrates.
BP shares have dropped almost 9% in the past year, against an increase of 6.5% for the Shell Rival, and investors complained about the company’s financial sub-performance raised of debt and the lack of strategic clarity.
In recent weeks, speculation has been widespread on the London market that BP is vulnerable to a buyout offer or an activist shareholder.
The pressure of the American investor could push BP to refocus on its basic oil and gas activity after years of construction of a sprawling empire of green energy projects.
A BP investor suggested that Elliott could request a complete breakup or so that the company withdraws from some of its weakest and release companies in the United States.
Other militant funds have recently planned to raise participation in BP, but the size of the company of 70 billion pounds sterling dissuaded them. An American activist who considered a move said that the BP’s board of directors had been “sleepy behind the wheel” and had a “confused strategy”. He added: “Activities upstream of BP do not justify all its market value.”
BP and Elliott refused to comment.
BP reports quarterly results on Tuesday and will update investors on its medium -term strategy on February 26.
Murray Auchincloss, managing director of the company, delayed the update and transferred it from New York to London after undergoing unknown medical procedure.
Elliott is directed in the United Kingdom and Europe by Gordon Singer, the son of the founder of the firm, Paul Singer. The company has targeted companies such as the mining group listed in the United Kingdom Anglo American and Pharmaceutical Giant GSK.
The company is well known as a formidable activist investor who is willing to fight conference room battles if it does not agree with the strategic orientation of a company.
Earlier this week, the FT indicated that Elliott had built almost 5% participation in the conglomerate listed in the United Kingdom Smiths groupSupporting a plan for the company to sell or dismantling two of its four units.
The company marked a great victory at the American conglomerate Honeywell This week, the company announced its intention to separate Thursday, just three months after Elliott embarked on a campaign to achieve this result.
Elliott’s participation in BP was reported for the first time by Bloomberg.
Additional Jamie Smyth reports in New York
