Offshore giants Mourant du Feu & Jeune and Walkers have refused to deny claims that they are holding merger talks in what would be the highest-profile tie-up to date in offshore legal market.

Partners at rival firms believe the pair are holding talks regarding a tie-up or a deal in which Walkers’ equity partners could sell off its highly-profitable services arm, Walkers SPV, to Mourant and then merge the law firms.