Listed Australian firm Slater & Gordon has confirmed that it is in talks with Manchester firm Pannone over a potential acquisition.

Speculation has linked the rapidly expanding Slater & Gordon with a deal for the top-60 firm for several months.

In an announcement yesterday to the Australian stock exchange, Slater & Gordon said it was discussing a potential transaction ‘consistent with our previously communicated strategy of actively pursuing expansion opportunities in the UK consumer legal services market’.

The statement said there is no material development to disclose on the deal at present, but completion is imminent.

‘We anticipate that discussions with a number of firms including Pannone will continue over the next several weeks,’ added the statement.

Earlier this year 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 sector.

Slater & Gordon bought Russell Jones & Walker last year to announce its arrival to the UK market, and has since closed deals with John Pickering & Partners, Taylor Vinters, Fentons and Goodmans.