Yahoo Finance Starbucks surges as activist Elliott takes sizeable stake, WSJ Says
Investing.com -- Starbucks jumped late into the close Friday after the Wall Street Journal reported that activist fund Elliott Investment Management has taken a sizeable stake in the coffee chain.
Starbucks Corporation (NASDAQ:SBUX) was up 6% in recent trading.
Elliott has been in talks with the company in recent weeks on ways to boost its share price, and a possible agreement could be reached soon, the Wall Street Journal reported Friday, citing unnamed sources.
But the size of Elliott’s stake as well as other demands including whether the activity fund is seeking seats on Starbucks' board couldn’t be determined, the report added.
The activist's interest comes as the company is facing slowing growth after reporting a decline in foot traffic and weaker-than-expected quarterly results in April that forced the coffee chain to cut its guidance for second time this year.
Investors will be eager for a further update on performance when Starbucks report fiscal third-quarter results due July 30.
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