BP (BP) activist investor Elliott Management is pushing the oil and gas giant to significantly reduce spending to increase its free cash flow by an additional 40%, The Financial Times reported Tuesday, citing sources familiar with the discussions.

The US hedge fund, which recently increased its stake in BP to more than 5%, is urging the company to shift its focus from growing its oil and gas business to prioritizing a target of $20 billion in annual free cash flow by 2027, the report said, citing the sources.

Elliott also believes the company should sell its solar and offshore wind power segments, and increase its cost savings target by $5 billion, the report said.

Elliott declined a request from MT Newswires to comment, while BP didn't immediately respond to the request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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