Elliott's Bold Move Against BP

Elliott Investment Management L.P. is making headlines by urging BP plc to significantly increase its free cash flow by 40%. This ambitious goal is proposed to be achieved through strategic spending cuts, as reported by the Financial Times on Tuesday.

The Call for a Fundamental Reset

Despite BP CEO Murray Auchincloss's announcement of a "fundamental reset" earlier this year, Elliott argues that the plan lacks the ambition and urgency required. The investment firm has not only criticized the current strategy but has also presented an alternative plan to steer BP towards better performance.

Investor Patience Wearing Thin

"Murray has taken 18 months to come up with a three-year plan that's neither ambitious nor urgent. Time is not on BP's side here, with the macroeconomic environment and with investor patience running out," a source revealed. The underperformance of BP has made it a potential target for takeovers, especially after Elliott increased its stake in the company to 5%.