PepsiCo Inc. has denied rumors that it plans to buy SodaStream International Ltd., but that’s done little to dampen investor frenzy Thursday for the Israeli company’s stock.
THE SPARK: A report in an Israeli newspaper said that PepsiCo Inc. is in talks to buy SodaStream, which makes at-home carbonation machines.
PepsiCo said Thursday that the report is “completely and totally untrue.” However, that didn’t stop the stock from surging before the market opened and maintaining most of its gains through midday.
A representative for SodaStream said the company doesn’t comment on rumor or speculation.
THE BIG PICTURE: SodaStream’s machines let people make fizzy water at home, with a variety of concentrated flavors that can be added to create different beverages. The company has been making a push to grow in the U.S., in part by targeting the wastefulness of the cans and bottles generated by Coca-Cola Co. and PepsiCo.
PepsiCo, based in Purchase, N.Y., makes drinks and snacks including Mountain Dew, Gatorade, Tropicana, Doritos and Quaker Oats.
SHARE ACTION: Shares of SodaStream added $3.65, or 5.3 percent, to $73 in afternoon trading, after earlier changing hands as high as $76.04, near a 2-year high for the stock.