Shares in oil major BP rose as much as 7% to their highest since August in early trade on Monday after Reuters reported Elliott Management had built a stake in the company, citing a source.

Shares in BP (UK:BP, BP) rose, following news the activist hedge-fund firm Elliott Management had built a stake in the U.K. oil company and plans to push for transformational changes. BP recently stoo

Elliott Investment Management has built a significant stake in BP Plc, according to people familiar with the matter, as the British oil major struggles to win back investor confidence and reverse years of underperformance.

Activist investor Elliott Investment Management has built a stake in oil major BP, a source familiar with the matter told Reuters on Saturday. The source did not provide the size of the stake. U.S.-based Elliott is seeking to boost shareholder value by urging BP to consider transformative measures,

The activist hedge fund is encouraging BP to consider more dramatic moves to restore the once venerable company’s fortunes.

BP Plc’s dramatic under-performance compared with other oil majors has reached a crunch point — a looming showdown with one of the world’s most aggressive activist investors.