BP shares jump after feared US hedge fund takes stake

Shares in BP jumped 7% yesterday after it emerged that the activist investor Elliott Investment Management had taken a stake in the UK oil company.

- Julia Kollewe

The stock rose as investors bet that Elliott, a feared New York hedge fund known for its attempts to shake up listed companies, would push for an overhaul of BP's strategy, along with a revamp of its board.

Elliott's arrival could lead to the departure of BP's chair, Helge Lund, and put pressure on its management to shift back more decisively towards fossil fuels, analysts said.

Shares in the 120-year-old company rose by more than 8% in early trading yesterday, before closing up about 7% at 465p, the highest since last July and helping the FTSE 100 to hit a new record high.

Elliott, led by the billionaire Paul Singer, has amassed a significant holding in the British energy company, Bloomberg reported on Saturday.

The fund, best known for chasing the Argentinian government for debts for more than a decade, has pushed for change at several large UK companies, including the drugmaker GSK, the energy company SSE and the housebuilder Taylor Wimpey.