Aug 1 (Reuters) - Elliott Management proposed a

settlement with Starbucks ( SBUX ) that would involve a board

expansion and governance improvements, while allowing CEO Laxman

Narasimhan to keep his job, CNBC reported on Thursday.

Starbucks ( SBUX ) and Elliott did not immediately respond to

Reuters requests for comment.

Elliott made its offer days before media reports that the

activist investor has a significant stake in the coffee chain,

the report said.

Starbucks ( SBUX ) had on Tuesday confirmed during its third-quarter

earnings call that Elliott was a shareholder and that talks with

the investor had been "constructive".

(Reporting by Juveria Tabassum in Bengaluru; Editing by Arun

Koyyur)