Starbucks may buy a stake in SodaStream

By: Matt McGovern Email
By: Matt McGovern Email
The coffee giant is in "advanced" talks to buy a ten percent stake in a soda-machine maker.

Spokespeople from both Starbucks and SodaStream declined to comment on "rumors or speculation."

NEW YORK, NY (CNNMoney) - Investors guzzled down shares of SodaStream International on Wednesday amid speculation the Israeli company could sell a stake to coffee giant Starbucks.

The stock popped 14 percent. It's the latest in a series of rallies fueled by reports the household soda-machine maker could team up with a power player in the beverage businesses.

Coca-Cola took a 10 percent stake in rival Kuerig Green Mountain Coffee earlier this year, adding to the speculation.

Israeli business publication Globes said that Starbucks is in "advanced talks" to buy a 10% stake in SodaStream that would value the company at $1.1 billion. That represents a 30 percent premium on SodaStream's market cap of $844 million as of Tuesday's market close.

Spokespeople from both Starbucks and SodaStream declined to comment on "rumors or speculation."

Investors should note that SodaStream's shares have previously enjoyed fleeting rallies in response to reports about a tie-up with a beverage maker.

SodaStream rallied double-digit percentages last week after a different Israeli newspaper said the company was meeting with large soft drink makers. The newspaper said possible buyers include PepsiCo, Dr. Pepper Snapple Group and Starbucks.

Despite the recent bounces, SodaStream's stock is still down over 7 percent this year.

Last year there were reports that PepsiCo was considering buying SodaStream outright for more than $2 billion.

Coca-Cola's decision to take a 10 percent stake in SodaStream rival Keurig Green Mountain Coffee in February has shaken up the beverage industry and sparked expectations of follow-up deals.


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