BUZZ-Phillips 66 rises after Elliott builds over $2.5 billion stake

Updates

Shares of U.S. oil refiner Phillips 66 PSX.N rise over 5% to $130.22

Activist investor Elliott Investment Management says it has built over $2.5 bln stake in PSX and plans to push for operational changes and a sale or spin-off of its midstream unit

Elliott says PSX's plan to boost shareholder returns "failed to materialize, and it has become evident that urgent changes are needed" and that its shares have lagged that of rival refiners

"A streamlined Phillips would include the sale or spin-off of the midstream business, the sale of the company's interests in CPChem and the sale of the JET retail operations in Germany and Austria" - Elliott

Says PSX board needs new independent directors to bolster accountability and conduct a review of management and co must commit itself to ambitious refining targets and prioritize profitability

Phillips 66 did not immediately respond to a Reuters request for comment regarding Elliott's plans for its midstream business

PSX lost 14.5% in 2024