Manchester firm Pannone has moved to dampen speculation linking it to an acquisition by Australian-listed firm Slater & Gordon.

Reports this morning included open speculation that Slater & Gordon is ready to buy the Deansgate firm.

Both parties have admitted they are looking at opportunities to merge with other firms, but insisted the speculation of a deal is premature at this stage.

A spokeswoman for Pannone said: ‘We have been linked to many firms over recent years and will always look at opportunities which align with the firm’s strategic aims. However, there is nothing to report on this particular rumour.’

In a statement, Neil Kinsella, chief executive of Slater & Gordon UK, said the firm was not in a position to comment on specific reports at this time.

‘It’s no secret that we have an ambition to continue to grow our business in the UK, including by acquiring firms who share our values,’ he said.

‘At any point in time we are in discussions with a number of firms, but as a publicly listed company if we did have an announcement to make about a potential acquisition of a material nature we would of course first make an announcement to the ASX [Australian Stock Exchange].’

Earlier this month Pannone reported a 12% profit rise to £10.4m for the year ending April 2013.

Profit per equity partner (PEP) rose 7% to £239,000, compared with £224,200 last year, on turnover down 1.2% to £45.6m.

The firm attributed its profit boost to a change in pricing policy as it adapted to the changing legal sector.

Pannone has pioneered a group of firms in the north-west dedicated to paralegal apprenticeships, with the course starting this month.

The firm also continues to seek new appointments, with five vacancies currently listed on the jobs section of its website.