PepsiCo, Inc. (NYSE:PEP) denied a report that it is in talks to acquire Israel’s Sodastream International Ltd (NASDAQ:SODA).

PepsiCo, Inc. (NYSE:PEP)’s CEO Indra Nooyi outright denied the deal in her interaction with CNBC today.

PepsiCo Denies Talk Of $2 Billion SodaStream Buyout Deal

An Israeli financial newspaper Calcalist earlier reported that PepsiCo, Inc. (NYSE:PEP) has made an offer through Goldman Sachs Group, Inc. (NYSE:GS) to buy Israel-based maker of countertop soda machines, Sodastream International Ltd (NASDAQ:SODA) for $2 billion.

The newspaper reported that PepsiCo, Inc. (NYSE:PEP) would be keen to tap SodaStream International Ltd’s (NASDAQ:SODA) potential to expand in the United States after the company posted over 100 percent growth during 2012.

Israel-based Sodastream International Ltd (NASDAQ:SODA) makes home beverage systems and became popular in the past for aggressively targeting in its advertisements the traditional beverage competitors like PepsiCo, Inc. (NYSE:PEP) and The Coca-Cola Company (NYSE:KO).

The beverage giant PepsiCo, Inc. (NYSE:PEP) CEO denied the report saying the newspaper report was ‘totally and completely untrue’.

Sodastream International Ltd (NASDAQ:SODA)’s officials were not immediately available for comment.

Sodastream International Ltd (NASDAQ:SODA)’s machines make carbonated drinks from water and got listed in Nasdaq in 2010. The Israeli-based company has a market cap of $1.4 billion.

Earlier reports suggested PepsiCo, Inc. (NYSE:PEP) offer might top $2 billion and the offer could be for as high as $95 per share, though Sodastream International Ltd (NASDAQ:SODA) quoted at $69.35 on Wednesday.

Interestingly the Israeli financial newspaper earlier indicated that Sodastream International Ltd (NASDAQ:SODA) is also evaluating its options for a deal with Coca-Cola Company (NYSE:KO), before getting into advanced discussion with PepsiCo, Inc. (NYSE:PEP).

Sodastream International Ltd (NASDAQ:SODA)’s products are sold in upscale departmental stores such as Harrods and the budget chains in the U.S. like Target Corporation (NYSE:TGT) and reported three-fold increase in its sales since 2009. Last year the group reported sales at $436 million coupled with 18-percent net profit growth at $44 million.

PepsiCo CEO Denies The Takeover Rumors

Interestingly PepsiCo, Inc. (NYSE:PEP)’s Chairman and Chief Executive Indra Nooyi emphasized at an investors conference last week that her company is not interested in large-scale mergers and acquisitions. However she indicated that her company would be keen to focus on tuck-in acquisitions involving less than $500 million a year.

In the early morning hours of Thursday, Sodastream International Ltd (NASDAQ:SODA) stock jumped to nearly $96 per share. However its share price dropped after the PepsiCo, Inc. (NYSE:PEP)’s CEO denied the takeover rumors.