Starboard ‘takes stake in Keurig Dr Pepper’

Core Viewpoint - Starboard Value has acquired a stake in Keurig Dr Pepper following the announcement of its $18 billion acquisition of JDE Peet's, which was initially met with negative investor sentiment [1][3][4]. Group 1: Stake Acquisition and Market Response - Starboard Value has been building its stake in Keurig Dr Pepper since the acquisition announcement and has engaged in private discussions with the company's management and board [1][2]. - Following the news of Starboard's stake, shares of Keurig Dr Pepper rose by 2.32% to $26.32 [2]. - The initial market reaction to the JDE Peet's acquisition was negative, with shares declining on the announcement date [4]. Group 2: Acquisition Details - Keurig Dr Pepper announced its intention to acquire JDE Peet's for $18 billion and plans to split into two publicly traded entities: Beverage Co. and Global Coffee Co. [3]. - The Global Coffee Co. is projected to become the world's largest pure-play coffee company, with approximately $16 billion in combined annual net sales [3]. Group 3: Investor Sentiment and Analyst Opinions - Analysts noted that the negative response from investors was partly due to concerns over JAB Holding's involvement, which has stakes in both Keurig Dr Pepper and JDE Peet's [4]. - There is a prevailing sentiment among analysts that investors lack confidence in Keurig Dr Pepper's coffee business, with some suggesting a need to focus more on its soft drinks segment [6].