Coca-Cola has poured cold water on speculation it could be lining up a takeover of energy drinks producer Monster.

Rumours of a possible deal helped drive up Monster’s share price by more than a quarter (28%) in trading yesterday to an all-time high, although the price fell back as Coca-Cola denied a deal was imminent.

“At this time, we are not in discussions to acquire Monster,” Coca-Cola said in a statement. “We continue to review the best ways to maximize the value of our relationship.”

Monster refused to comment. The California-based group – whose energy drinks are distributed in the US by Coca-Cola – grew sales by 35% last year to $286m (£176.5m).