Activist Elliott Said to Build Stake in Struggling Oil Major BP

Fund seeking to boost shareholder value by pushing firm to consider transformative measures

- Bloomberg

Elliott Investment Management has built a significant stake in BP Plc, according to people familiar with the matter, as the British oil major struggles to win back investor confidence and reverse years of underperformance.

The activist fund is seeking to boost shareholder value by pushing the firm to consider transformative measures, the people said, asking not to be identified because the discussions are private.

Elliott believes BP is significantly undervalued and its performance is disappointing, they said. The exact size of the stake couldn't be immediately learned.

Representatives for Elliott and BP declined to comment.

BP has fallen about 8% over the past five years, while its Big Oil rivals from Shell Plc to Exxon Mobil Corp have risen by at least 30%.