Elliott Investment Management Pressures BP for Financial Overhaul

Elliott Investment Management L.P. is urging BP plc to significantly increase its free cash flow by 40%, primarily through spending cuts, according to a recent report by the Financial Times. This move comes as the investment firm critiques BP's current financial strategy as insufficient.

BP's Current Plan Deemed Inadequate

Following BP CEO Murray Auchincloss's announcement of a "fundamental reset" earlier this year, Elliott has expressed dissatisfaction, proposing an alternative plan. The firm argues that BP's three-year strategy lacks ambition and urgency, potentially leaving the company vulnerable in the current macroeconomic climate.

Takeover Speculations Rise

With investor patience wearing thin and BP's continued underperformance, concerns about a potential takeover are growing. Elliott's recent increase in its stake in BP to 5% further fuels these speculations, highlighting the urgency for BP to reassess its financial strategies.