Takeover target Australand says it has not received an approach from property giant Mirvac about a potential merger.
Australand recently rejected a partial takeover offer from property group GPT, and is now reportedly being considered as a target by Mirvac.
Both companies have commercial, industrial and residential property assets, including major office developments in Sydney and Melbourne.
The speculation caused a rise in Australand shares, up six cents, or 1.8 per cent, at $3.43 at 1221 AEDT.
Mirvac shares were down 3.25 cents, or 2.2 per cent, at $1.48.
But Australand said on Tuesday it had not received a merger proposal from Mirvac.
On December 7 GPT offered about $3 billion for Australand's investment property portfolio and its commercial and industrial property business.
Australand later rejected the bid and said it would not hold further talks with GPT, but the suitor has said it is committed to making an offer that is in the interests of shareholders of both companies.