Activist investor Elliott has purchased a 5% stake in oil refiner Phillips 66.
TLDR - Elliott has acquired shares worth 2.5B in Phillips 66 over the last 2 years. It wants Phillips 66 to spin off its midstream business - aka - oil pipeline business. Wall Street analysts believe Phillips 66 will be worth more if its' different operational business are split than the current structure.
It seems to be good for the share price - its trading at 131, up ~7% on this news.
Thats right. I do dislike these funds' talking about operational efficiency. But spinoffs are an exception. There is always potential for massive upside with negligible downside. GE was a superb spinoff/split - I think its at 3X market cap in less than 12 months