Elliott Administration has taken a $1 billion stake in Phillips 66 and is in search of as numerous as two board seats as the company underperforms its peers, in accordance to a Wednesday letter from the activist trader.
Phillips 66’s stock rose almost 6% in early investing Wednesday. The crude refining organization has a market cap of practically $52 billion. CNBC’s David Faber originally broke the news.
Elliott’s push for the board seats will come as Phillips has underperformed its rivals Marathon Petroleum and Valero. The activist trader claimed in the letter to Phillips’ board that the company’s functionality has declined in modern years because it has shifted its focus away from its refining segment.
“More than the past three decades, as Phillips 66 has fallen further more and more powering, its stock has meaningfully underperformed these friends,” Elliott informed the board.
The activist trader claimed Phillips’ working expense for every barrel has soared in new decades, “shaking investor confidence in the company’s skill to run its refining functions efficiently.”
Elliott claimed Phillips’ stock has a 75% upside from its previous closing value of $118 if the organization executes on CEO Mark Lashier’s targets.
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