SodaStream International Ltd.
) jumped again on Wednesday, this time by almost 11% on news that
) was in "advanced talks" to buy a 10% stake in the company.
an Israeli business news site, reported on Wednesday that the
Israel-based manufacturer of household soda machines is
considering the sale of 10% stake to Starbucks that would value
the company at $1.1 billion. The news site further added that the
purchase offer represents a 30% premium on SodaStream's market
price. Neither of the companies, however, commented on the
SodaStream commented earlier this year that it is testing
handcrafted cold sodas in some of its stores. The company has
received good response for the sodas and plans to launch them
soon. The deal with SodaStream would allow Starbucks to make
branded sodas. Also, collaboration with Starbucks could enhance
the distribution of SodaStream's machines.
Last week, shares of the SodaStream rose as much as 8% on
April 16. Shares of the company were buoyed by news published in
another Israeli website that the company was in talks to sell as
much as 16% stake to a big buyer. Speculation was that the
partner will be a big beverage maker, allowing SodaStream to
compete more effectively in this ultra-competitive
space. The Israeli website, noted that SodaStream was in
Dr Pepper Snapple
) or Starbucks.
SodaStream has been in news for the past few months more for
possible buyout rumors rather than for its poor earnings
performance. After cola giant,
The Coca-Cola Co.
) bought a 10% stake in
Keurig Green Mountain, Inc
) for $1.25 billion earlier this year, there have been rumors
that SodaStream may enter into a similar collaboration with
Coca-Cola's rival, Pepsi.
SodaStream carries a Zacks Rank #3 (Hold).
DR PEPPER SNAPL (DPS): Free Stock Analysis
KEURIG GREEN MT (GMCR): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
STARBUCKS CORP (SBUX): Free Stock Analysis
SODASTREAM INTL (SODA): Free Stock Analysis
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