(Reuters) -Former Starbucks (NASDAQ:) CEO Howard Schultz is opposing a potential settlement between the coffee chain and activist investor Elliott Investment Management, the Financial Times reported on Friday.
Schultz, who is the sixth-largest shareholder with a $2.03 billion stake in the company, made his opposition to an Elliott settlement known to some board members, according to LSEG data, the report said, citing people familiar with the case.
Elliott has built a significant position in Starbucks and has discussed ways to improve the coffee chain’s stock performance, two sources familiar with the matter told Reuters last week.
Starbucks declined to comment on the report, while Schultz and Elliott did not immediately respond to Reuters requests for comment.
The former CEO had stepped down from the company’s board last year after helping transform the company into a coffee giant that turned venti cappuccinos into a global phenomenon.
During his 41-year association, Schultz played a pivotal role in transforming Starbucks from a small company that sold only whole beans to a global coffeehouse chain with more than 36,000 stores in 86 markets. He stepped down as CEO in 2023 after returning to the helm for the third time.
After Starbucks’ disappointing quarterly results in April, Schultz wrote on LinkedIn that the coffee chain must review its American activities.
Elliott, who has won board seats at Etsy (NASDAQ:), Phillips 66 (NYSE:) and Match in the first half of 2024, is currently pushing for changes at Southwest Airlines (NYSE:).
The hedge fund, which managed $65.5 billion in assets as of December, also launched campaigns at Texas Instruments (NASDAQ:) and Johnson checks (NYSE:) earlier this year.
Shares of Starbucks, which are down nearly 23% this year, rose marginally in extended trading Friday.
