IB Net Payout Yields Model

Don't Dump SodaStream Too Soon

The old saying, "where there's smoke, there's fire" applies mightily to the news on SodaStream (SODA) today. According to an Israeli website, PepsiCo Inc. (PEP) is exploring a deal that values the company at nearly $2 billion.

The company is a leading manufacturer of home beverage carbonation systems sold at major retailers around the world with a primary target on growing in the Americas where soda usage is significantly higher than in Western Europe.

The reports suggest that SodaStream is attempting to engage in a discussion with Coca-Cola (KO) in order to obtain the highest potential valuation. With so many details, it suggests that some form of discussion must be taking place. Typically though, the real facts get confused during the rumor spreading phase so a denial by PepsiCo might just be an indication of confusion on the actual suitor instead of a lack of a deal.

Read the full article at Seeking Alpha.

Disclosure: Long SODA. Please review the disclaimer page for more details. 


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