Elliott Investment Management L.P. is pressing BP plc to boost its free cash flow by 40% through slashing spending, the Financial Times reported on Tuesday, citing sources.
According to the sources, Elliott told the British company that the "fundamental reset," which was announced by BP CEO Murray Auchincloss earlier this year, isn't enough. The sources added that the investment firm put forward an alternative plan.
"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. The continued underperformance of BP makes it open to a takeover," one source commented. Elliott recently upped its stake in BP to 5%.
