Bluebells symbolise everlasting adoration. Yet there is little love lost between hedge fund Bluebell Capital Partners and BP. The London-based activist has called BP’s strategy to cut oil and gas production “irrational”. Instead the FTSE 100 oil producer should slash investment in clean energy and plough more into its core hydrocarbons business.
That BP has become the target of activist pressure should not surprise. On an enterprise value 3.4 times its forward ebitda, BP trades a tenth below already cheap European peers such as Shell and Total.
Bluebell’s campaign dates to October when it sent a letter to Murray Auchincloss, at the time BP’s interim chief executive. Despite its modest size, Bluebell boasts some success at other big companies, namely Danone. Yet it is unlikely to count a strategic volte-face at BP among its victories.