Pepsico (PEP) is reportedly deep in talks to purchase SodaStream (SODA), a popular producer of home carbonation beverage machines. The Calcalist, an Israeli financial newspaper, says that the potential takeover bid is worth at least $2 billion, a 33% premium to where SodaStream shares traded on Thursday.

However, Pepsico denied the rumor on Thursday morning. A company spokesperson told Reuters that, “the rumor is untrue,” and reiterated that Pepsico has no desires to make any large acquisitions in the near term.

The Israel-based SodaStream is the leader in consumer home carbonation products. SodaStream allows users to carbonate their own soda and water, which makes it a logical takeover target for Pepsico, one of the world’s largest beverage manufacturers.

SodaStream is also an attractive takeover target because it has immense growth potential in a slow and predictable beverage market. Revenue expanded 33.9 percent year over year and the company has plans to innovate new products in the future. The company hopes to move into the sparkling water business by producing tap water carbonation machines for restaurants.

Both SodaStream and the Calcalist are based in Israel, which is why the rumor carries some weight. As a result, SodaStream shares skyrocketed over 30 percent during pre-market trading, but the rally faded when Pepsico denied the rumors.

However, investors are still cautiously optimistic about a deal. Shares during normal trading hours were up 4.85 percent to $72.72. Meanwhile, Pepsico stock took little note of the rumors, as shares traded down 0.11 percent to $81.11.