Starbucks says it is not buying Chipotle after takeover speculation
"Starbucks is not buying Chipotle," a Starbucks spokesperson told CNBC.
TL;DR
- Starbucks denies considering the acquisition of Chipotle Mexican Grill.
- Chipotle's stock dropped following Starbucks' statement.
- Starbucks' shares rose after the denial.
- Previous rumors suggested Starbucks was working with advisors on a takeover proposal for Chipotle.
- Chipotle had hired advisors to defend against potential unwanted takeover bids.
- Chipotle's stock has declined over the past year, making it a cheaper acquisition target.
- Speculation had suggested a potential reunion with Brian Niccol, current Starbucks CEO and former Chipotle leader.
- Starbucks shareholders reportedly expressed concerns about a costly distraction during the coffee chain's turnaround.