BP Shares Gain As Activist Hedge Fund Elliott Takes Stake

(RTTNews) - Shares of BP Plc. were gaining around 7 percent on the London Stock Exchange and in pre-market activity on the NYSE, after media reported that the British energy major's stake has been bought by activist hedge fund Elliott Management.

The size of Elliott's purchased stake is yet to be known. Meanwhile, FT reported that its involvement at BP would fuel talk of an overhaul of the struggling firm's strategy and a shake-up of its board.

In mid- January, there were reports that BP was planning to cut around 4,700 jobs, representing over 5% of its workforce, as part of a major cost-reduction initiative.

BP CEO Murray Auchincloss earlier had stated that the company intends to deliver at least $2 billion of cash savings by the end of 2026.

In its recent trading update, BP said it expects its fourth-quarter upstream production to be lower than the third quarter, with lower output in oil production and operations, and in gas and low carbon energy.

The earnings will also include non-cash, post-tax charges related to impairments of $1 billion to $2 billion attributable across the segments.

BP is scheduled to release its annual earnings report on February 11.

In London, BP shares were trading at 463.59 pence, up 7%.

In pre-market activity on the NYSE, BP shares were trading at $34.39, up 6.57%.