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BP shares increased by almost 7% at the start of negotiations on Monday, while the acquisition by the Elliott militants’ hedge fund, participation, raised the hope of an upheaval to the major oil in difficulty.
The size of Elliott’s participation has not been disclosed, but its involvement at BP, which was reported for the first time on Saturday, will ensure that the overhaul of the group’s strategy and an upheaval of its advice administration.
“We believe that any activist calls for a change in the president at least,” said Biraj Borkhataria, analyst at RBC Capital Markets.
The actions went to 462p, after the Friday close at 433.25p.
Before the increase on Monday, BP had dropped off the share price of almost 10% in the past year, while investors had criticized its underperformance and uncertainty about its strategy.
The group, one of the 10 best companies in the London Stock Exchange by market capitalization, was chaired by Helge Lund since 2019. He said last month that an investor day scheduled for this week would be delayed until 26 February, so that the director general Murray Murray Auchinclos could recover from a “planned medical procedure”.
Auchincloss should use the event to try to convince investors that he has the right strategy for the company.
Jefferies analysts said they thought that Elliott’s participation in the company could cause advice changes and a decrease in its activities “by emphasizing the exit from low carbon and in carbon and certain retail regions ”.
The hedge fund could also put pressure for capital expenses to focus on upstream projects, which would maximize the generation of cash flows, they added.
Borkhataria suggested that an evaluation of the sum of the parts of BP activities would be much higher than the value of the current company of the group of around $ 130 billion, including debt.
