(Reuters) – U.S. oil refiner Phillips 66 has retained two prime monetary and authorized advisers for its duel with activist investor Elliott Funding Administration, in line with an individual accustomed to the matter.
Elliott needs two board seats to be crammed by executives with refining expertise and quicker motion on restructuring the fourth-largest U.S. oil refiner to enhance its lagging monetary efficiency, the New York activist mentioned on Wednesday. It disclosed a $1 billion stake and took public its requires change.
Phillips 66 is counting on monetary and authorized recommendation from Goldman Sachs and Wachtell, Lipton, Rosen & Katz, the particular person accustomed to the matter mentioned.
Shares within the Houston refiner rose for a second day as traders cheered the activist’s proposal for refining value cuts and a refreshed board of administrators.
The inventory traded at $127.95 at mid-day Thursday, up 8.4% from its $118 per share shut previous to Elliott’s going public with its letter.
A Phillips 66 spokesman declined to touch upon the advisers or whether or not it has new conferences scheduled with the activist. The corporate has acknowledged it held and can proceed these talks however has not mentioned whether or not it might settle for Elliott’s director candidates.
“We predict some portfolio optimization shall be essential to attain full valuation, because the conglomerate construction hides the true worth of PSX’s property,” wrote Tudor Pickering Holt & Co. refining and chemical compounds analyst Matthew Blair. He charges the shares a “purchase” with a $130 goal value.
The corporate may divest some non-operated pipeline properties, a European retail fuels unit and its 50% stake in CPChem, a chemical compounds three way partnership with Chevron, Blair wrote.
(Reporting by David French in New York, extra reporting and writing by Gary McWilliams; Enhancing by Chizu Nomiyama)
