:max_bytes(150000):strip_icc()/GettyImages-2164946616-5322d2a17ea048d4b8e5853953045bed.jpg "Starbucks shares rise after report of Starboard Value’s stake in coffeehouse chain")
Starbucks shares rise after report of Starboard Value’s stake in coffeehouse chain
Key findings
- A report that hedge fund Starboard Value had acquired a stake in Starbucks drove up the share price of the world’s largest coffeehouse chain on Monday.
- The Wall Street Journal said the amount of Starboard’s investment or the changes requested was unclear.
- Starbucks is already in settlement negotiations with activist investor Elliott Investment Management, which, according to the newspaper, has also acquired a stake in the company.
Starbucks (SBUX) shares rose in intraday trading on Monday after news that hedge fund Starboard Value has acquired a stake in the world’s largest coffeehouse chain and is calling for efforts to boost the stock price.
The Wall Street Journal stated that the amount of investment and the needs were not known. Neither Starbucks nor Starboard responded immediately to a Investopedia Request for comment.
Starbucks is already negotiating with activist Elliott Investment Management
The newspaper noted that the move came as Starbucks is in settlement talks with activist investor Elliott Investment Management, which previously reported that it had acquired a large stake in the company and also demanded changes.
Last month, Starbucks reported a decline in third-quarter sales compared to the same period a year ago, as global comparable-store sales fell 3%, including a 14% decline in China.
Even with today’s 2.2% increase to $76.75 as of 1:05 p.m. ET, Starbucks shares are still down about 20% year-to-date.
