At-home soda leader SodaStream International is in early talks to sell a 10 to 16 percent stake in the company to a large strategic entity, the Calcalist financial news website reported on Wednesday.
SodaStream stocks jumped 8% in response to the news.
The talks involve a company valuation for SodaStream of $1.1 billion, Calcalist said, noting that there are still differences between the parties over the type of deal that would be carried out.
Officials at Israel-based SodaStream could not immediately be reached for comment.
According to Calcalist the potential investor is one of three companies: PepsiCo Inc, Dr Pepper Snapple Group or Starbucks Co.
The company valuation reflects a share price of $52, compared with SodaStream's closing price of $37.64 on Tuesday.
According to Calcalist the potential investor is interested in receiving an option to increase its stake in the future and eventually gain control of the company.
In February Coca-Cola bought 10 percent of Green Mountain Coffee Roasters Inc and it will help launch Green Mountain's new cold drink machine, putting pressure on SodaStream to bolster its position through a partnership or merger with a leading drinks players.
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