Activist Starboard Value takes stake in Starbucks, WSJ reports

ACTIVIST investor Starboard Value has a stake in Starbucks the Wall Street Journal reported on Friday (Aug 9), adding that it wants the coffee giant to take steps to improve its stock price.

Starbucks shares were up 3.2 per cent in extended trading.

The size of the hedge fund’s stake in the company is not known, the newspaper wrote.

The Wall Street Journal, citing people familiar with the matter, also wrote that Starboard’s exact demands could not be learned. Sources have told Reuters that Starboard has not made any demands as it has not contacted the company.

A spokeswoman for Starboard did not respond to several requests for comment. A spokesman for Starbucks declined to comment.

Known for its pricey lattes, Starbucks, last week reported a drop in quarterly global sales hurt by weak demand in the US and a 14 per cent drop in China same-store sales.

SEE ALSO

Starbucks sales fall as diner retreat extends in US, China

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

The company is already facing one activist investor with Elliott Investment Management currently engaging in discussions with the company, sources have said. Elliott often negotiates with companies and ends up putting representatives on the board.

Starboard and Elliott have previously ended up invested in the same stock at eBay, Salesforce and most recently at Match Group. REUTERS