Liontrust Asset Management (LIO) has denied it is in talks to acquire smaller rival Artemis (ATS) .
The Financial Times reported that Liontrust, which has assets under management of £28bn, had held early stage talks with Artemis about a potential tie up. It cited three anonymous sources, although another told the newspaper that the talks had not progressed.
London-based Artemis, which is owned by US investment firm Affiliated Managers Group and its 27 partners, has £23bn in AUM.
However, in a brief statement the FTSE 250 firm noted: "Liontrust is not in talks with Artemis over an acquisition of its business."
Artemis has so far declined to comment.
Shares in Liontrust, which jumped on Tuesday, had fallen 1% to 685.5p by 0900 GMT.
Liontrust has snapped up seven smaller asset managers over the last 12 years, as it looks to diversify and expand its core business.
It also made a £95m all-share offer for GAM Investments last year, but failed to secure the backing of the Swiss firm's shareholders.