Elliott Investment Management, an activist investor, has disclosed a significant stake in oil refiner Phillips 66 and is urging the company to sell or spin off its pipeline business. The firm believes the move could fetch over $40 billion and improve the company’s operations.
Phillips 66 shares rose by 4.9% before trading began, following news of Elliott’s latest push for change. The investor argues that the company should streamline its operations and set more ambitious refining targets.
Elliott has been pushing Phillips 66 to reform since 2023, when it first invested in the company with a stake valued at around $1 billion. The firm claims that focusing on refining and implementing other measures could increase the stock price by 75%.
Phillips 66 has already made efforts to address Elliott’s concerns, including appointing Robert Pease to its board of directors. However, the company still faces pressure from the activist investor to cut costs and improve oversight.
The latest move comes as Phillips 66 continues to execute a cost-cutting initiative aimed at selling $3 billion in assets. The company has already sold around $2.7 billion since 2022.
Source: https://finance.yahoo.com/news/elliott-builds-more-2-5-025126547.html