SodaStream Pops 11% on Minority Stake Sale Buzz

Shares of SodaStream International (NASDAQ:SODA) climbed 11% Wednesday morning after an Israeli newspaper reported the household soda-machine maker is huddling with large soft-drink producers over a minority stake sale

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The deal speculation comes months after Coca-Cola (NYSE:KO) shook up the beverage industry by acquiring a 10% stake in SodaStream rival Kuerig Green Mountain Coffee (NASDAQ:GMCR) for $1.25 billion. Coke also announced plans to market a new at-home beverage system created by the coffee roaster.

According to Israel’s Calcalist, SodaStream is conducting preliminary negotiations to sell a 10% to 16% stake at a valuation of $1.1 billion. That translates to about $52 per share for Lod, Israel-based SodaStream, or a 38% premium on the company’s Tuesday close on Wall Street at $37.69.

A SodaStream spokesperson said the company does not comment on “rumor and speculation.”

The paper mentioned possible buyers include PepsiCo (NYSE:PEP), Dr. Pepper Snapple Group (NYSE:DPS) and Starbucks (NASDAQ:SBUX).

Calcalist reported in June 2013 that PepsiCo and SodaStream were in advanced acquisition talks for more than $2 billion, but the U.S. food and beverage giant denied the report and no deal emerged.

SodaStream’s shares came under pressure in early January after the company slashed its financial guidance due to shrinking margins and lower prices.

They bounced back following Coke’s acquisition of a stake in Green Mountain in February, but that rally proved short lived.

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