Elliott's Bold Move Against BP

In a bold move, Elliott Investment Management L.P. is urging BP plc to significantly increase its free cash flow by 40%. This ambitious goal is proposed to be achieved through strategic spending cuts, as reported by the Financial Times on Tuesday. Sources close to the matter reveal that Elliott has communicated to BP that the current "fundamental reset" announced by CEO Murray Auchincloss falls short of expectations.

A Call for More Ambitious Plans

Elliott has not only criticized BP's current strategy but has also presented an alternative plan. According to insiders, the investment firm believes that BP's three-year plan lacks both ambition and urgency. "Time is not on BP's side here, with the macroeconomic environment and with investor patience running out," a source commented, highlighting the urgency for BP to act.

Increased Stake Signals Serious Intentions

Adding weight to its demands, Elliott recently increased its stake in BP to 5%, a move that underscores its serious intentions and could potentially make BP more vulnerable to a takeover. This development marks a critical moment for BP as it navigates through these pressures and strives to meet investor expectations.