Activist Elliott meets BP investors to discuss more changes, sources say

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Elliott, some investors want deeper change at BP, sources say

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Cost cuts, potential board change among options, sources say

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BP says it has received 'widespread support' from investors

By Sarah McFarlane and Shadia Nasralla

March 21(Reuters) - Activist investor Elliott Management has met several large shareholders in BP to try to forge a consensus for more changes at the oil major that could include cost cuts and a potential leadership reshuffle, two shareholders told Reuters.

BP stock has underperformed rivals Shell and Exxon in the last five years, which investors have blamed in part on the company's 2020 plan to focus on growing its renewable business while cutting oil and gas production.

Having watered down that plan, BP accelerated its pivot back to hydrocarbons in a strategy revamp last month.

But the two shareholders, who attended separate meetings with Elliott, said both they and Elliott wanted deeper change. Elliott declined to comment. It has a near 5% stake in BP, a source previously told Reuters.

A BP spokesperson said that executives had met investors holding nearly half of the company's shares, and approaching 75% of institutional investors, since it announced the new strategy on February 26.

"We have received widespread support for BP's reset strategy and the changes laid out," the spokesperson said. "The consistent message also received is that our focus should be on delivery - executing the strategy and hitting our targets. That is our priority."

Pressure for reform mounted after Elliott, which has led campaigns for change at companies including Marathon Petroleum ( MPC ) , Hess and Honeywell ( HON ), became one BP's largest shareholders.

Elliott and investors discussed potential changes to BP's board and management team, and a reduction of annual spending to below $13 billion, the two shareholders said.

For now, BP aims to spend $13-$15 billion annually and cut costs by $4-$5 billion through 2027.

One of the shareholders said BP could be more ambitious on asset sales.

Elliott would like BP to sell a significant part of its petrol station network and eventually completely exit from renewable power generation, a person familiar with the situation said.

BP told investors it would divest $20 billion of assets by 2027. The company said it would increase oil and gas spending, slash investments in renewables, and cut net debt to $14-$18 billion by the end of 2027 from around $23 billion currently.

Shareholders will vote on whether to re-elect BP's board, including chairman Helge Lund and CEO Murray Auchincloss, at the company's AGM on April 17. (Reporting by Sarah McFarlane and Shadia Nasralla. Editing by Anousha Sakoui and Mark Potter)