BP shares jumped early Monday following weekend reports that activist investor Elliott Management has built a stake in the struggling oil major.

Elliott is known for its aggressive activism in the companies it invests in, frequently pushing for rapid and significant change.

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.

Beleaguered shareholders of BP Plc who’ve watched their investment lag over the past few years are banking on activist Elliott Investment Management LP’s track record to help them extract some value from their positions.

BP is poised to open at its highest since August, after activist investor Elliot Management was reported to have taken a significant stake in the company.

Shares in BP rose by 7% to their highest since August in early trade on Monday, after investor Elliott Management built a stake in the energy major it is expected to use to press for change in strategy and to the board.

We don’t know how big its stake is, or exactly what its plans are for BP – will it try to break the company up, or could it try to force a sale of the company?'

BP’s share price surged more than 6% in early morning trading on Monday after it was revealed that US activist shareholder Elliott Investment Management has built up a considerable stake in the supermajor.

The development, if confirmed, could see transformative changes at BP going forward, as the investor may look to enhance shareholder value. Elliott reportedly believes BP is 'undervalued', and the oil major's performance has been disappointing.