GO
Loading...

SODA spikes on rumors, but sale not likely

Sodastream International shares jumped on Thursday following reports that the company would go private, but investors shouldn't bank on a deal, a financial services firm said.

Stifel called the sale "highly improbable to impossible." The firm said the reported deal of $40 a share would overvalue the company.

An employee uses a forklift to prepare pallets of SodaStream products for export at the SodaStream International factory in Mishor Adumim, Israel.
Ariel Jerozolimski | Bloomberg | Getty Images
An employee uses a forklift to prepare pallets of SodaStream products for export at the SodaStream International factory in Mishor Adumim, Israel.

It added that any deal would rely heavily on outside capital, noting Sodastream had a negative free cash flow in each of the past three years. Stifel maintained its "sell" recommendation on the company.

Read MoreSodastream reportedly in talks to go private

Bloomberg reported on Thursday that the maker of home soda machines was in talks with an investment firm to go private, citing sources familiar with the matter. The deal would value Sodastream at $40 a share, or $828 million, a 38 percent premium above Wednesday's close.

After being halted briefly on the Nasdaq, Sodastream shares hovered more than 10 percent higher on Thursday.

Read MoreSodastream trader makes 3,000% profit in 2 hour

— By CNBC staff

Contact M&A

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More*