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Starbucks China Draws Bids Valuing It Up to $10B, Report Says

1. Starbucks considers selling a stake in its China operations. 2. Valuation for Starbucks China is between $5 billion and $10 billion. 3. Nearly 30 firms submitted offers for a potential stake sale. 4. Starbucks CEO addresses competition from local players like Luckin Coffee. 5. Stock is up 4% this year, with premarket trading increasing by 1.5%.

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FAQ

Why Bullish?

Selling a stake in a challenging market may improve balance sheet and focus. Historical context shows similar actions led to better returns during restructuring phases.

How important is it?

The planned sale is significant due to the large potential valuation and competitive challenges in China.

Why Long Term?

The stake sale could strengthen Starbucks' long-term growth strategy, particularly in Asia, historically seen as a growth market.

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