WH Ireland Group PLC (AIM:WHI) says it is in deal talks with a fellow broker Zeus Capital.
Noting recent press speculation, the City firm confirmed that it is in discussions with Zeus "with regards to the possible sale of its capital markets division".
"These discussions are at an advanced stage but there can be no certainty that any transaction will occur."
The capital markets unit accounts for around 40% of group revenue and generated £4.4 million against £7 million for the comparable period a year earlier, with the drop attributed to the lack of market activity in London generally.