Starbucks Corp (NASDAQ:SBUX, ETR:SRB) and Elliot Management are in settlement talks that would give the activist investor a seat on the coffee chain’s board, according to a report from CNBC.
Elliot Management has built a significant stake in Starbucks, worth approximately $2 billion per CNBC, and has been discussing ways to improve its stock performance.
The publication reported that Starbucks’ directors and Elliott Management met last week to discuss the settlement.
Citing sources with knowledge of the offer, CNBC said that the settlement talks, if successful, could see Elliot Management managing partner Jesse Cohn become a Starbucks director.
Previously reported details of the settlement include CEO Laxman Narasimhan retaining his position and seat on the board, governance improvements, and the expansion of the board.
Starbucks’ shares are down about 17% so far in 2024 as the coffee house struggles with weakening demand in the US and China.
The stock traded 3.3% higher at about $78 on Monday following reports activist investor Starboard Value has taken a stake in the company.