Delek pressing Starbucks to buy its Starbucks Israel stake

Delek denied the report while Starbucks Israel declined to comment.

Sources inform ''Globes'' that the Delek Group is negotiating to sell its 80% stake in Starbucks Israel to Starbucks (Nasdaq:SBUX). If Starbucks refuses to buy full ownership in Starbucks Israel, Delek is demanding the parties pricing structure be changed.

The sources added that under the partnership terms, Delek paid Starbucks $250,000 for the franchise rights, plus 6% of turnover.

The negotiations follow shocks at Starbucks Israel from the ouster of its CEO Micki Kenan and chairman Giora Sarig. Delek wanted to fire all of Starbucks Israel's personnel, while Starbucks tried to protect Kenan, appointing him its representative in Israel. Delek Group CEO Gabriel Last did not deny the possibility that Delek might sell its stake for the right price, but claimed it was not negotiating with Starbucks to sell its stake.

Starbucks Israel declined to comment on the report.

Published by Globes [online] - www.globes.co.il - on July 9, 2002

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