Headline: Elliott Hikes Stake in Phillips 66 to $2.5B, Pushes for Midstream Spin-Off
Introduction:
Elliott Investment Management has significantly expanded its stake in oil refining giant Phillips 66, and is advocating for a strategic shift in the company's operations.
Key Points:
* Elliott's stake has grown to over $2.5 billion, according to Bloomberg sources.
* The activist investor aims to simplify Phillips 66's structure by urging the sale or spin-off of its midstream business.
* Elliott believes the company has not met its commitments to enhance board diversity and experience.
* Shares of Phillips 66 surged in premarket trading after the news, gaining up to 7.1%.
Elliott's History with Phillips 66:
* In 2023, Elliott initially disclosed a stake of around $1 billion, advocating for increased focus on refining and other measures to boost stock value.
* Elliott has reportedly collaborated with Phillips 66 on board restructuring efforts.
* The company has implemented cost-cutting measures under pressure from Elliott, targeting $3 billion in asset sales by 2025.
Current Developments:
* Elliott now holds approximately 0.2% of Phillips 66's outstanding shares.
* Phillips 66 has not yet commented on Elliott's expanded stake or its proposals.