Here’s how activist Elliott could build shareholder value amicably at Phillips 66
Publishing timestamp: 2023-12-02 09:08:40
Summary
The article discusses how activist investor Elliott has taken a $1 billion stake in Phillips 66 and is seeking up to two board seats. Elliott believes that the company's underperformance can be attributed to a shift in focus away from the refining segment and poor execution in cost reductions. Elliott agrees with the company's plan to refocus on refining and cut costs, and believes it could lead to a higher stock price. The article suggests that adding new directors with refining operations experience to the board could help rebuild shareholder trust. If the company fails to meet performance targets, Elliott may push for management changes and asset sales.
Sentiment: MIXED
Keywords: business news, marathon petroleum corp, phillips 66, breaking news: investing, investment strategy, valero energy corp, hedge funds,