Elliott Investment Management nominated seven directors to Phillips 66's board, laying the groundwork to push for changes that include spinning off or selling its midstream business, two people familiar with the matter said.

Elliott Investment Management, which has taken a $2.5 billion stake in Phillips 66, said the nominated directors will bolster accountability and improve oversight of Phillips’ management initiatives.

Elliott Management has nominated seven directors to the Phillips 66 (NYSE:PSX) board, laying the groundwork to push for changes that include spinning off or selling its midstream business, Reuters reported Tuesday.