Elliott Investment Management has taken a significant stake in US refiner Phillips 66, worth $2.5 billion, and is pushing the company to spin off its midstream business. This move comes as Elliott continues to push for changes at the company, citing underperformance.
The activist investor’s latest move mirrors its actions last year, when it took a $1 billion stake in Phillips 66 and pushed for refining expertise on the board. However, the company has not made significant progress since then, with the stock price falling from $163 in March to $123 now.
Phillips 66 is taking a diplomatic approach, saying it welcomes constructive dialogue with Elliott. However, the investor’s track record suggests that it will not back down. Elliott has successfully pressured other companies, including BP and Honeywell, into making significant changes.
A spinoff of Phillips 66’s midstream assets could be on the horizon, according to some analysts. If Elliott decides a broader shakeup is in order, the company could face turbulence. With its track record of pushing for underperforming companies, Phillips 66 should brace for potential disruptions.
Source: https://oilprice.com/Energy/Energy-General/Aggressive-Activist-Investor-is-Gunning-for-Phillips-66.html