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Phillips 66 criticises activist investor Elliott in proxy battle

Phillips 66 criticises activist investor Elliott in proxy battle

Bob Pease was the independent director of Phillips 66. He defended its performance and criticized Elliott Investment Management, on Friday. The boardroom battle between Phillips 66 and Elliott Investment Management intensified.

Elliott, who disclosed earlier this year a stake in Phillips 66 of over $2.5 billion, has been pressing for operational changes at the energy firm and a board revamp. Pease, who was appointed to the board of the refiner in February 2024 following an agreement reached with the activist investor, is actually a director.

Pease wrote to his shareholders that Elliott was "a highly distracted shareholder".

Elliott's inconsistent involvement has, in my opinion, been the most bizarre. Pease wrote that there would be long silences followed by rapid public actions.

Elliott did not respond immediately to a comment request.

The letter is being sent at the same time that both Phillips and Elliott are naming their nominees to serve on their boards for an election scheduled for May.

Elliott nominated 7 executives, which could remove him. The U.S. refiner has nominated 4 executives, including Pease.

Pease wrote that Elliott had refused to allow the board to meet with the nominees and that the company responded by declaring that "no further steps were necessary."

Pease wrote: "I don't know why Elliott wants me off the Board." Reporting by Vallari Shrivastava, Bengaluru. Editing by Shilpa Majumdar.

(source: Reuters)