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Activist investor, Elliot Investment Management has increased its stake in energy giant, bp, to 5%, making it one of bp’s largest current shareholders alongside other institutional investors like Vanguard. The investor is seeking for a transformational change within bp, including cutting spending and boosting free cash flow to $20 billion by 2027.
Bp’s market valuation has been struggling, falling to $76 billion, which is significantly less than its peers like Shell and ExxonMobil.
Also, bp’s retreat from its energy transition plans to re-focus on fossil fuels has made activist investors like Legal & General Group unhappy.