Phillips 66 Puts Up Fight Against Elliott Campaign for Changes | OilPrice.com
document.write(write_html);
}
Breaking News:
U.S. refiner Phillips 66 told shareholders on Tuesday that Elliott Investment Management’s demands for breaking up the company are misguided, based on inflated and unrealistic assumptions, and would destroy shareholder value.
Activist hedge fund Elliott Investment Management has called on Phillips 66 to spin off its midstream business and tighten up operations.
document.write(write_html);
}
Elliott, which has an investment worth more than $2.5 billion in Phillips 66, last week made the case to the refiner’s shareholders that “Phillips investors’ patience has been punished, and a new lineup on the Board is necessary to reverse the Company’s long-term underperformance and improve its poor corporate governance practices.”
Elliott wants Phillips 66 to sell off or split the midstream business and focus only on refining. Elliott believes that its “Streamline 66” plan for Phillips 66 has the potential to increase Phillips’ stock price to more than $200 per share. Phillips 66 shares closed at $96.59 apiece on Monday.
Elliott proposed four nominees for the board of directors at the refiner.
Ahead of the May 21 shareholders’ meeting, Phillips 66 said on Tuesday that “Elliott’s misguided proposals will disrupt Phillips 66’s momentum by pushing for irreversible change that will destroy shareholder value.”
Shareholders face “an activist hedge fund pushing an aggressive short-term agenda – including a rushed breakup of our Company based on flawed analysis – that would introduce unnecessary risk and disruption, slow our momentum and jeopardize your invested capital and long-term returns,” Phillips 66 said.
“Elliott wants a quick win by breaking up the Company, based on inflated and unrealistic assumptions,” the refiner added.
The board of Phillips 66 unanimously recommended that the shareholders vote “FOR” only Phillips 66’s nominees.
Another high-profile activist push from Elliott is unfolding at UK-based supermajor BP.
The oil giant’s chair Helge Lund has informed the board that he would be stepping down from the role “most likely during 2026,” and the board of directors has initiated a succession process, BP said last week.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
Join the discussion | Back to homepage
document.write(write_html);
}
FACEBOOK
Twitter
GOOGLE+
LINKEDIN
REDDIT
PRINT
document.write(write_html);
}
EXXON Mobil
-0.35
Open57.81
Trading Vol.6.96M
Previous Vol.241.7B
