LOS ANGELES (Reuters) - An investment arm controlled by activist investor Nelson Peltz has dissolved its stake in Starbucks Corp (SBUX.O), removing uncertainty as the company restructures and lifting shares nearly 5 percent.
Peltz’s Trian Fund Management reported in May that it bought more than 800,000 shares, or less than 1 percent, of Starbucks — raising the stakes for Chief Executive Howard Schultz, who returned at the beginning of the year to revive sagging U.S. sales at the formerly fast growing coffee chain.
Shares in Starbucks have lost about 40 percent of their value from a year ago.
Peltz is known for pressuring corporate management to raise profitability by doing such things as selling non-core businesses and unprofitable ventures.
Funds controlled by Peltz also have stakes in Wendy’s International Inc WEN.N, H.J. Heinz Co HNZ.N and P.F. Chang’s China Bistro PFCB.O.
Shares in Starbucks were up 76 cents to $17.06 in early afternoon trade on the Nasdaq.
Reporting by Lisa Baertlein; editing by Gunna Dickson