Starbucks Is Said to See Boyu as Frontrunner for China Unit (2)

Private equity firm Boyu Capital has emerged as the frontrunner in Starbucks Corp.’s search for a partner in its China business, according to people familiar with the matter, as the coffee chain tries to revive its fortunes in its second-biggest market.

Boyu is the likeliest buyer for a controlling stake of the business after outbidding other private equity firms including Carlyle Group Inc., the people said, asking not to be identified because the information is private. A transaction could value the Chinese operations at more than $4 billion, the people said.

The coffee chain and Boyu may need ...