BP shares pop 7% after reports activist hedge fund Elliott has taken a stake in the struggling British oil major

BP shares jumped at the market open following weekend reports that activist investor Elliott Management has built a stake in the struggling oil major and could pressure the energy company to shift gears on its core oil and gas businesses.

BP stock was up 7.04% at 8:57 a.m. London time.

The company has declined to comment on the reports, which do not specify the size of the stake accrued by Paul Singer’s hedge fund. CNBC has reached out to Elliott Management for comment.

The British oil major, which is set to unveil its fourth-quarter results on Tuesday and its broader strategy on Feb. 26, has been lagging its British and U.S. energy peers, with shares falling over the last year — compared with significant gains for Shell.

Last month, BP issued a trading update warning of higher corporate costs, lower fourth-quarter realized refining margins and one-off charges linked to its bio-ethanol acquisition. It is also seeking buyers for its Ruhr Oel GmbH German refinery assets and in January revealed plans to cut 4,700 roles amid CEO Murray Auchincloss’ efforts to deliver at least $2 billion of cash savings by the end of 2026.

This breaking news story is being updated.