Reports in The Wall Street Journal as well as two industry publications -- Beverage Digest and Beverage Business Insights quoted unnamed sources as saying the world's largest soft drink maker is in serious negotiations to acquire part or all of Glaceau.

The reports sent shares of Tata Tea, which had bought the 30 per cent stake for $677 million in August last year, soaring by close to 15 per cent on the Indian bourses.

Tata Tea shares closed at Rs 773.35 on Bombay Stock Exchange, 14.8 per cent over the previous close of Rs 673.70. Earlier in the day, the stock hit an intra-day high of Rs 781.

When contacted, a Tata Tea spokesperson declined to comment. Officials at Atlanta, US-based Coca-Cola could not be immediately contacted.

Based on the price of Tatas' acquisition, Whitestone, New York-based Glaceau could be valued at close to $2.25 billion. However, the reports suggested a deal could be worth as much as $3 billion.

Although it was not clear whether Coca-Cola was looking to acquire Tatas' stake or not, brokers said the sharp rally in Tata Tea's shares today was triggered by expectations that the company could reap huge premium on its stake in Glaceau if the US giant decides to acquire 100 per cent of the North American energy drink maker.

The reports said that Coke was looking to expand its non-soda based products portfolio with this acquisition in its bid to reverse its declining sales momentum.