Starbucks says it is not buying Chipotle after takeover reports

"Starbucks is not buying Chipotle," a spokesperson told CNBC, denying a Financial Times report that the coffee chain had worked with advisors on a takeover proposal. Chipotle shares fell nearly 4% on the denial while Starbucks rose about 1%; Chipotle had reportedly hired advisors to fend off activists or an unwanted bid.

Why it matters: The denial cools what would have been the biggest-ever restaurant takeover and a reunion with Starbucks CEO Brian Niccol, Chipotle's former chief.