PepsiCo Inc, the world's number two soft drinks maker, is in talks to buy Russia's top juice maker Lebedyansky, which is being auctioned.

Russian business daily Kommersantsaid PepsiCo had agreed to buy over 76 per cent of Lebedyansky for $1.5-$2 billion.

The company's closing price on Friday put its market capitalisation at $1.95 billion.

Spokesmen for Lebedyansky and PepsiCo both declined to comment.

Deutsche Bank is advising Lebedyansky while Dresdner Bank and Russia's Renaissance Capital are advising PepsiCo, sources said. The banks declined to comment.

Kommersant said the deal would take place before the year end, sending Lebedyansky shares up 3.9 per cent to 2,530 roubles (€72.78).

PepsiCo, like rival Coca-Cola Co, is focusing on emerging markets to help offset weakness at home, where people are choosing healthier drinks such as bottled waters and teas over traditional soft drinks. PepsiCo controls about a fifth of the Russian soft drinks market and about a third of potato chip sales.