In trading in Germany on Thursday, SodaStream International surged after a website in Israel reported PepsiCo was is takeover talks with the soda machine maker for over $2 billion.
The SodaStream stock price jumped to $102.28 or a 47% leap from the closing price on Wednesday in New York.
However, later in the day, the stock was down to $78.70 giving back over half its increase after Indra Nooyi, the CEO of PepsiCo said in Myanmar that is was the first time she heard anything about those talks.
The soda-making system of SodaStream employs the use of reusable bottles, tap water, cylinders and over 160 flavors of syrups. The systems are sold in over 45 countries, with more than 45% of total sales coming from the western part of Europe and the region of the Americas representing 39% of sales.
PepsiCo is sitting on cash of $7 billion, which gives it firepower for a possible acquisition. The candy and cookie maker, Mondelez International Inc, split from Kraft Foods last year and has recently been touted as a possible target by industry analysts after stakes in both corporations were disclosed by Trian Fund Management.
On Thursday, in trading in Germany, PepsiCo was trading at $80.80 at midday or about 0.5% lower than the closing price of Wednesday in the U.S.
