Monster energy drink shares soar on news of talks with Coca Cola

Monster energy drinks stock soared on Monday as the company was reported to be in talks with Coca Cola over a potential buyout.

The Wall Street Journal reported that Coca Cola was looking to buy the $13 billion company to tap the lucrative energy drink market.

After the report was posted, shares in the California-based energy drink company skyrocketed 27 per cent to $83.31 around midday in New York, the Los Angeles Times reported.

In late afternoon, Coca Cola issued a statement denying the rumor, the Financial Times reported. "At this time, we are not in discussions to acquire Monster Beverage Corp.," the statement read, according to the Financial Times. "We continue to review the best ways to maximize the value of our relationship."

Monster's share price closed down 0.8 percent to end the day at $65 after Coca Cola squelched the excitement, the LA Times reported.

The buyout would be one of the biggest ever for Coca Cola.

Coke is currently Monster's distributor in the United States.

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Monster declined to comment about the deal.

According to the Financial Times, Monster drinks accounted for just over a percentage point of US soft drink sales but continues to rise as most competitors in the category have stagnated or declined.

In 2011, the company reported $286 million in net income with nearly $2 billion in net sales.

The Wall Street Journal said Monster had a 34.8 percent share of the US energy drink market last year, with Red Bull in the number two position at nearly 30 percent.

Rockstar was third at around 18 percent.