Activist Elliott Management has become BP’s third-largest shareholder after building a near-5 per cent stake worth almost £3.8bn, as it seeks to force the troubled UK oil major to cut spending on renewable energy and make big divestments, according to two people close to the situation.

Activist investor Elliott Management has built a nearly 5% stake in BP and is pushing for major asset sales and strategic changes at the oil and gas giant.

Analysts suggest hedge fund will want board room shake-up, E&P focus, asset sales, spin-offs and could 'smoke out' corporate interest