BP shares jumped after active hedge boxes

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BP stocks increased by almost 7 percent in early trading on Monday, as investors responded to the news that the activist Elliott Management has built a stake in the struggling oil specialization.

The stocks rose to 462 pixels, after closing on Friday at 433.25 pixels.

The size of the Eliott stake has not been revealed but its participation in the BP, which was reported for the first time on Saturday, will talk about reforming the group’s strategy and photographing the board of directors.

“We believe that any activist will call for a change in the president, at least,” said Perj Bokhtaria, an analyst at RBC Capital Markets.

BP, one of the 10 best companies on the London Stock Exchange, according to the market value, has suffered a decrease in stock prices by almost 10 percent in the past year, while investors criticized its weak performance and uncertainty about its strategy.

The Helge Lund group has been chaired since 2019. Last month, the investor day scheduled for this week will be delayed until February 26 so that CEO Murray Auchincloss can “the planned medical procedure”.

Auchincloss is expected to use the event to try to persuade investors that he has the right strategy for the company.

Jefferies analysts said they believe that Elleott’s share in the company can lead to changes in the board of directors and reduce its business “with a focus on out of low carbon assets and some retail areas.”

They added that the hedge fund could focus to focus capital expenses on the source projects, which will increase the generation of cash flow.

Borkhataria suggested that the assessment of the total parts of the BP business be much higher than the value of the current institution of the group of about $ 130 billion, including debt.