The Calcalist, an Israeli financial newspaper, might have thought it was breaking important news when it reported that PepsiCo (NYSE:PEP) was negotiating a deal to buy Israeli-based SodaStream International (NASDAQ:SODA), but according to a PepsiCo spokesman Thursday, the report is “totally and completely untrue.”
The company is the maker of countertop machines that turn tap water into soda. It also makes flavors, carbon dioxide refills and reusable bottles. SodaStream is listed on the Nasdaq and has a stock market capitalization of roughly $1.4 billion. It can be found at stores around the world, including the upscale department store, Harrods in London, or in chains throughout the United States like Target (NYSE:TGT). Its U.S. sales doubled in 2012, and the potential for further expansion in the country is what incited PepsiCo to initiate talks for the acquisition, the newspaper contended.
And it even went on to provide details. The Calcatrist reported that PepsiCo had made an offer through Goldman Sachs (NYSE:GS) to buy SodaStream for $2 billion or more, and would even be willing to pay $95 per share. Sodastream was interested in PepsiCo, but it also wanted to discuss the potential for a deal with Coca Cola Co (NYSE:KO) first.
However, according to spokesmen from PepsiCo, the newspaper needs to check its facts. The company stands by its position that is not looking to make any large-scale acquisitions at the time. Instead, Indra Nooyi, PepsiCo chairman and chief executive, said her company is “[continuing] to focus on “tuck-in” acquisitions generally totaling less than $500 million a year.”