China’s Starbucks rival pushes its luck

The chairman of Chinese startup Luckin Coffee wants to borrow at least $200 million from banks including Goldman Sachs and Morgan Stanley, under a deal that would award them roles in the company's planned U.S. initial public offering, Reuters reported on March 12, citing unnamed sources.

Lu Zhengyao, who is also an early investor in Luckin, is seeking to back the loan with his shares in the startup, according to the report. If Luckin fails to go public, the collateral would be swapped for stock in Hong Kong-listed car rental company Car Inc., where Lu is chairman and owns about a third of the shares.

Delivery-focused Luckin, which is aiming to have more shops than Starbucks in China by the end of 2019, has hired Credit Suisse to lead the IPO and is seeking a valuation of about $3 billion, according to various media reports. Morgan Stanley and Goldman are advising.

ReutersBiz petesweeneypro This is not the capitalism I leaned about in B School...

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Howard Schultz on building the Starbucks brand: 'I know a little bit about marketing'Asked about how he would market himself as a presidential candidate Schultz said: 'I have not officially said that I am running for president. If you were going to give me credit, you'd have to say that I know a little bit about building a brand.' Yeah, well, Trump marketed his brand -- and then himself as a candidate in 2016 -- and look what has happened. Don't need another marketer as POTUS, that's for darn sure. Great! Stay in your element and leave politics to people with a clue. CNBC, why are you always misleading people. How can everything be horrible on friday and wonderful on monday, while nothing changed, except another Boeing going down, Germany figures down, Brexit likely to be a no-deal Brexit, etc. You have to live with your lies, not me.
Source: CNBC - 🏆 12. / 72 Read more »