Sodastream International Ltd (SODA) Negotiating Sale Of 16% Stake

Sodastream International Ltd (SODA) Negotiating Sale Of 16% Stake

Sodastream International Ltd (NASDAQ:SODA) may be in the early stages of negotiations to sell a 10% to 16% stake to a major soft drink maker, according to the Israeli publication Calcalist. The website states that the potential deal values Sodastream at approximately $1.1 billion. That would be a significant premium on Tuesday’s closing price.

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There is significant short interest in Sodastream International Ltd (NASDAQ:SODA), with over a third of its stock being sold short, according to Reuters. Currently the two parties are said to be held up in making a deal by differences in the type of the deal they would do.

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Speculations about Sodastream’s potential partners

According to Calcalist, the interested investor wants to receive the option to raise its stake in Sodastream International Ltd (NASDAQ:SODA) with the purpose of acquiring the entire company in the future. Of course there’s plenty of speculation about which companies may be potential suitors, including PepsiCo, Inc. (NYSE:PEP), Starbucks Corporation (NASDAQ:SBUX) and Dr Pepper Snapple Group Inc. (NYSE:DPS).

According to Bloomberg Businessweek, PepsiCo, Inc. (NYSE:PEP) is seen as the leading possibility because The Coca-Cola Company (NYSE:KO) recently bought a 10% stake in Keurig Green Mountain Inc (NASDAQ:GMCR). Coke’s goal in that partnership was to develop a new machine for making cold drinks which could be similar to Sodastream’s machine.

If Pepsi wants Sodastream

If Pepsi does turn out to be the company Sodastream International Ltd (NASDAQ:SODA) is speaking with about a stake purchase, then Monness Crespi Hardt & Co. analyst Jim Chartier believes Sodastream will see an increase in household penetration.

PepsiCo, Inc. (NYSE:PEP) CEO Indra Nooyi said in February that they were seeking to expand in in-home carbonation, seeing it as “another distribution channel,” and saying that they were “working with multiple people” in choosing a good partner for the product. Also last June, Pepsi was said to have offered to buy Sodastream International Ltd (NASDAQ:SODA) for $2 billion, although later the soft drink maker said that report wasn’t true. Then in February, the rumors of a deal with Pepsi resurfaced again.

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Michelle Jones is editor-in-chief for and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at
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