(Reuters) – Former Starbucks CEO Howard Schultz is reportedly opposing a potential settlement between the coffee chain and activist investor Elliott Investment Management, as per the Financial Times. Schultz, the sixth largest shareholder with a $2.03 billion stake in the company, has expressed his opposition to an Elliott settlement to some board members, sources familiar with the matter revealed.
Elliott has acquired a significant position in Starbucks and has been in discussions to enhance the coffee chain’s stock performance, according to Reuters sources. Starbucks refrained from commenting on the report, while Schultz and Elliott have not responded to Reuters’ requests for comment.
Schultz left the company’s board last year after his instrumental role in transforming Starbucks into a global coffee giant with over 36,000 stores in 86 markets. Following disappointing quarterly earnings in April, Schultz emphasized the need for an overhaul in Starbucks’ U.S. operations on LinkedIn.
Elliott, known for its activism, has initiated campaigns at various companies including Etsy, Phillips 66, and Match. The hedge fund, managing $65.5 billion in assets, is currently advocating for changes at Southwest Airlines. Earlier this year, Elliott launched campaigns at Texas Instruments and Johnson Controls.
Starbucks’ shares, which have declined by nearly 23% this year, saw a marginal increase in extended trading on Friday.
