Dixons Retail and Carphone Warehouse have confirmed they are in preliminary discussions over a possible merger.
The pair said in a statement: "These discussions are at a very preliminary stage and there can be no certainty that a transaction will be forthcoming.
"No decision has been reached regarding the structuring of any such merger. Accordingly until further notice, for the purposes of the Code, both Dixons and Carphone Warehouse will be treated as offeree companies."
PCR has more details.