FT: Starbucks explored takeover of Chipotle (CMG +6%), SBUX slides 3%
What happened
The Financial Times reported Thursday that Starbucks has worked with advisers in recent months on a takeover offer for Chipotle Mexican Grill, citing people familiar with the matter. The status of the plans and whether Starbucks has submitted a formal offer could not be determined, and the people cautioned that a deal of this size may never materialize. Chipotle shares surged about 6% while Starbucks declined roughly 3% on the news.
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Start your free 14-day trialWho’s affected & sources
Who’s affected
- Chipotle (CMG) -- positive takeover speculation
- Starbucks (SBUX) -- negative, potential overpay/acquisition risk and capital concerns; restaurant sector names (YUM, DPZ, MCD) -- read-through on M&A wave speculation