09:30 AM EST, 02/11/2025 (MT Newswires) -- Phillips 66 (PSX) activist investor Elliott Investment Management said Tuesday that the company's midstream business should be sold or spun off.

Elliott said in a letter to the company's board that the business could command premium valuation of more than $40 billion.

Elliott said the company should also sell its interest in CPChem and divest some European retail operations.

The oil company should also add new independent board members to boost accountability and enhance oversight of management, said Elliott, which disclosed a more than $2.5 billion stake in Phillips 66.

Phillips 66 didn't immediately respond to a request for comment from MT Newswires.