Investors guzzled down shares of SodaStream International on Wednesday amid speculation the Israeli company could sell a stake to coffee giant Starbucks.
The stock popped 14%. It's the latest in a series of rallies fueled by reports the household soda-machine maker could team up with a power player in the beverage businesses.
Coca-Cola ( took a 10% stake in rival )Kuerig Green Mountain Coffee ( earlier this year, adding to the speculation. )
Israeli business publication Globes said that Starbucks ( is in "advanced talks" to buy a 10% stake in )SodaStream ( that would value the company at $1.1 billion. That represents a 30% premium on SodaStream's market cap of $844 million as of Tuesday's market close. )
Spokespeople from both Starbucks and SodaStream declined to comment on "rumors or speculation."
Investors should note that SodaStream's shares have previously enjoyed fleeting rallies in response to reports about a tie-up with a beverage maker.
SodaStream rallied double-digit percentages last week after a different Israeli newspaper said the company was meeting with large soft drink makers. The newspaper said possible buyers include PepsiCo (, )Dr. Pepper Snapple Group ( and Starbucks. )
Despite the recent bounces, SodaStream's stock is still down over 7% this year.
Last year there were reports that PepsiCo was considering buying SodaStream outright for more than $2 billion.
Coca-Cola's decision to take a 10% stake in SodaStream rival Keurig Green Mountain Coffee in February has shaken up the beverage industry and sparked expectations of follow-up deals.