Fairfax Media (FXJ) and Macquarie Radio Network (MRN) have poured cold water on speculation about a possible merger of their radio business.
In a statement to the Australian Securities Exchange, the groups say no decision has been made to merge.
Fairfax said it has discussions with interested parties from time to time, but has nothing to announce at this point.
Macquarie said it is mindful of its continuous disclosure obligations and is committed to keeping shareholders fully informed, while Fairfax confirmed it is in compliance with ASX listing rules and said it will keep the market informed as required.
Sources earlier said a "friendly merger" had been proposed in recent weeks whereby Fairfax would merge stations such as Melbourne's top rating 3AW and Sydney's 2UE into Macquarie Radio, which was already listed on the sharemarket, The Australian reported.
Under the scenario, Fairfax would spin out its holding in the combined group via an in specie demerger and distribution of the business into a new listed vehicle.
Banks working on the proposal believe the merger of the two companies would capture more than $10 million in synergies, according to the newspaper.