PepsiCo Denies Report of Talks to Buy Sodastream

by Marc Bastow | June 6, 2013 9:57 am

PepsiCo Denies Report of Talks to Buy Sodastream

Investors watching the highly successful run of Sodastream (SODA[1]) got another piece of good news today as reports from Israeli-based financial publication The Calcalist suggest PepsiCo (PEP[2]) is in talks to buy the high-flying carbonated beverage maker. Calcalist’s report suggests a price tag of $2 billion, or up to $95 per share, made through Goldman Sachs (GS[3]) on behalf of PepsiCo.

PepsiCo has denied the rumor, with a spokesman telling Reuters that “the rumor is untrue” and further advising that the company is sticking with its recent position that it sees no immediate need for any large acquisitions.

Calcalist reported further that Sodastream was checking potential options with Coca-Cola (KO[4]) prior to moving into any additional talks with PepsiCo.

Sodastream has seen its stock rise over 120% during the past year, and news of the acquisition talks bumped it up over 4% in pre-market trading on Thursday morning to just over $72 per share.

Sodastreams recent share price moves[5] coincide with an upgrade to the stock price at Citigroup (C[6]), and Oppeheimer (OPY[7]), who both pegged a price of around $68 per share, and Barclays (BCS[8]), who made a call for the stock to reach $100 based on its revenue and earnings projections through fiscal year 2016.

Global sales for Sodastream, which started trading on the Nasdaq in 2010, have more than tripled since 2010, with last year’s (2012) revenues at $436 million and profit of $44 million, a rise of over 18% compared to 2012. Sodastreams current market valuation stands at just over $1.4 billion.

Written by Marc Bastow, Assistant Edit0r at InvestorPlace.com. As of this writing he did not hold a position in any of the aforementioned securities.

 

 

 

 

Endnotes:
  1. SODA: http://studio-5.financialcontent.com/investplace/quote?Symbol=SODA
  2. PEP: http://studio-5.financialcontent.com/investplace/quote?Symbol=PEP
  3. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  4. KO: http://studio-5.financialcontent.com/investplace/quote?Symbol=KO
  5. recent share price moves: http://investorplace.com/2013/06/sodastream-soda-bcs-c-opy-ko-pep/
  6. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  7. OPY: http://studio-5.financialcontent.com/investplace/quote?Symbol=OPY
  8. BCS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BCS

Source URL: http://investorplace.com/2013/06/sodastream-and-pepsico-pep-gs-c-opy-doda-bcs/
Short URL: http://invstplc.com/1nyJ8Mz