An Israeli financial publication reported that SodaStream is considering selling up to 16 percent of its company to a large-scale investor such as PepsiCo, Dr Pepper Snapple Group or Starbucks, according to Forbes.
The publication, Calcalist, didn’t identify a source in its story, but that didn’t dissuade Wall Street. The rumor spiked shares of SodaStream, the Airport City, Israel-based maker of at-home soda kits, by more than 8 percent on Wednesday morning.
The Calcalist report states that the valuation discussed would place SodaStream at about $1.1 billion, a 30 percent increase from its current value, elevating shares to $52. As of press time, the company’s shares sell at $40.66.
Even with the jump in share prices and Coca-Cola’s recent acquisition of a minority stake in Keurig Green Mountain, which will develop its own competing at-home soda maker, the report could be nothing more than a smokescreen. Last year, Calcalist reported that Pepsi made a $2 billion offer to buy SodaStream. Pepsi refuted the report and the sale never happened.
Meanwhile, SodaStream has steadily bolstered its innovation and announced a number of partnerships, including recent deals with KitchenAid, Sunny Delight Beverages Co., Skinnygirl and Welch Foods Inc., among others.
Chalk up the latest Calcalist report as highly speculative yet, by the Wall Street response, also noteworthy.