SodaStream Gains 9% on Stake Sale Rumor, Stifel Analyst Skeptical

Shares of SodaStream International SODA are higher by 9.15 percent to $41.20 following a rumor from Calcalist about the company possibly selling a take of itself. Calcalist reported the company is in talks to sell a 10-16% stake for $52 a share to Pepsi PEP, Dr. Pepper Snapple DPS, or Starbucks SBUX. The deal would include options allowing the potential suitor to increase the stake for control of SodaStream. SodaStream management declined to comment on the rumor. According to analyst Jim Chartier of Monness Crespi Hardt & Co, SodaStream shareholders believe SodaStream “is either going to sell itself or end up in a partnership with Pepsi.” If Chartier is right, failing to reach a deal with a suitor would be a downside risk to investors. Stifel Nicolaus analyst Jim Duffy is not optimistic a deal will be reached. According to Duffy, the economics of SodaStream would not offer sufficient margin opportunity for a major beverage company to outweigh the risk of potential “cannibalization.” Duffy believes syrup profit streams would be “insignificant” for buyers like Pepsi, Dr Pepper, or Starbucks.