Elliott's biggest win this year may be at Starbucks, beginning with private discussions and ending with a CEO change that investors and activists cheered.
Elliott's biggest win this year may yet be at Starbucks, beginning with private discussions over the activist's multibillion-dollar stake, and ending with a CEO change that investors and activists cheered.
Starbucks stock had dipped about 24% since Narasimhan took the helm in March 2023. The company struggled with declining same-store sales in the U.S., where traffic fell 6%Elliott met separately with Narasimhan and then-chair Mellody Hobson in late June, the people said. The company was still reeling from its disastrous earnings report and slowing worldwide demand. The activist's representatives underscored in both meetings that immediate action was needed, the people said.
Negotiations continued, and the activist's representatives met with roughly three-quarters of the company's board in more informal settings through July and into August, the people said. But the conversations played out against the backdrop of persistent leaks that people familiar with the deal said could only be coming from the boardroom.
But those close to Elliott acknowledge that while Narasimhan's departure came as a surprise to the activist, Starbucks' landing on Niccol was better than anything they were asking for.
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