Elliott Takes $1 Bln Stake In Phillips 66, Seeks Two Board Seats

(RTTNews) - Activist investor Elliott Investment Management has raised a $1 billion stake in Phillips 66 (PSX) and seeks two board seats.

Elliott revealed on Wednesday that it has sent a letter to Phillips 66 outlining "a path by which Phillips 66 can remedy its underperformance, improve its execution, restore trust with investors and unlock significant and sustainable value for its shareholders."

Elliott sees approximately 75% upside to the current stock price.

Among the steps Elliott recommended is the appointment to the Phillips 66 Board of two highly qualified new directors. Elliott did not call for ousting Phillips 66 Chief Executive Officer Mark Lashier.

"Mr. Lashier and the rest of the management team deserve investor support so long as they demonstrate meaningful progress against these targets," Elliott said in the statement. "At the same time, we find the market's skepticism to be understandable, and we believe the Board must take several steps to reassure investors that Phillips 66 is in the best possible position to achieve its value-creation potential."