Elliott Investment Pressures Phillips 66 for Major Overhaul

Elliott Investment Management has acquired a significant stake in oil refiner Phillips 66 and is pushing for operational changes. The activist investor aims to simplify the company's operations and improve shareholder returns following performance improvement plans and board recommendations.

Elliott Investment Management has significantly increased its stake in U.S. oil refiner Phillips 66, reaching over $2.5 billion, according to a source familiar with the matter. The activist investor plans to push for operational transformations to enhance the company's stock value.

The move includes potential sales or spin-offs of Phillips 66's midstream business and has been compared to similar actions taken by Elliott, such as those with Honeywell. The firm has expressed dissatisfaction with the speed of changes previously recommended by Phillips 66 and is advocating for board modifications that include refining experts.

Phillips 66, meanwhile, indicates openness to discussions with Elliott, emphasizing constructive dialogues aimed at enhancing shareholder value. Having become one of Phillips 66's top five investors, Elliott continues to press for changes following its recent stake acquisition in oil giant BP, highlighting Elliott's broader investment strategy.

(With inputs from agencies.)