Activist hedge fund Starboard Value has built a stake in Keurig Dr Pepper (KDP) following the beverage giant’s $18bn acquisition of European coffee maker JDE Peet’s, a deal that has drawn criticism from investors, according to a report by Reuters.

The report cites unnamed people familiar with then matter as revealing that Starboard began building its position after the August announcement and has since held private discussions with Keurig management aimed at improving execution and restoring investor confidence.

Keurig Dr Pepper’s shares have dropped nearly 24% since unveiling the deal, though they rebounded 3% on Monday following reports of Starboard’s involvement.

The transaction – which would merge Keurig and JDE Peet’s before splitting into two US-listed companies – is designed to generate $400m in annual cost savings and mitigate the impact of rising tariffs on coffee imports.

The deal partly unwinds the 2018 merger of Keurig Green Mountain and Dr Pepper Snapple, offering investors exposure to more focused business units.

JDE Peet’s majority owner, JAB Holding, controlled by Germany’s billionaire Reimann family, will retain about 5% stakes in both entities post-spin-off.