Elliot Management Invests $1 Billion in Philips 66: Blackstone to Take Over Rover for $2.3 Billion

Elliot Management acquired a stake in crude refiner Philips 66 by investing $1 billion. It seeks to appoint its two members to the board of Philips 66. In today’s latest on the US News website, the shares of Philips 66 jumped in the premarket hours on the US stock exchanges following the deal.

Philips 66 has underperformed in the past 3 years

In a communiqué, Elliot said Philips 66 must reassure investors by improving its performance. In the past three years, the crude refiner has underperformed compared to its peers, such as Valero and Marathon Petroleum. Elliot stated that the management team at Philips 66 needs the support of investors to achieve these targets. It accused the management of inefficient refining business practices. It also stated that the operating expenses of the company have skyrocketed in the recent period.

Elliot also urged the management of Philips 66 to improve the trust of the investors through meaningful steps in the right direction. It forecasts a 75% upside to the current stock price of Philips 66. Elliot said it admires the targets set by the company for 2025, but investors are doubtful whether the present team could achieve the same.

Blackstone will acquire Rover for $2.3 billion

In today’s breaking news headlines, Blackstone, an asset manager, clinched a deal to acquire Rover for $2.3 billion. As per the terms of the deal, the stockholders will be paid $11 for each share. It is at a 29% premium to the closing price of $8.50 on Tuesday. The stock price of Rover surged by over 30% after the deal.

The Chief Executive Officer and co-founder of Rover, Aaron Easterly, commented on the deal, saying the company is excited to enter a new chapter. The company will work with the team at Blackstone for improved vision and success in the future.

Rover offers its services in 10 countries

Rover connects pet-sitting and dog walking services through its platform. At present, its services are available in 10 nations, comprising the UK, the US, Germany, Italy, Sweden, Norway, the Netherlands, Spain, and France.

Rover suffered a setback with the COVID-19 pandemic after several years of consistent growth. It is against the backdrop of many people sitting at home and travelers canceling travel to various locations across the world. As a result, the company retrenched 41% of its employees in March 2020.

Rover recovered from the effects of the COVID-19 pandemic. It became a publicly traded company in August 2021 after merging with Nebula Caravel Acquisition Corp. Rover was valued at $1.35 billion in February 2021. Amid a broader tech downturn, the shares of Rover plummeted throughout 2022. However, Rover’s business is flourishing.

Aaron said the revenues of Rover improved by 30% to $66.2 million in Q3. It was an outstanding performance. Its net income was $10.5 million. The bookings for pet services rose by 20% YoY to 1.8 million during the period. Rover is actively operating in 30,000 neighborhoods across the world. The demand for the pet industry across the world is expected to reach $500 billion in 2030. It is an increase from $320 billion in 2023.

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