The suggested merger between the real estate heavyweight agencies, McGrath and LJ Hooker, which has gained momentum recently, has been denied by the latter.
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LJ Hooker, headed by Leslie Janusz Hooker, the grandson of the founder, was sold by Suncorp in 2009 to a consortium, which included Mr Hooker. The group, which has an extensive franchise business and a corporate arm, is chaired by property stalwart and head of Folkestone, Greg Paramor.
Last year, to simplify the business, Mr Paramor and the board sounded out investment advisors about the viability of selling the corporate side of the business.
At the same time, John McGrath, who founded McGrath agency in 1988, and has about 61 offices in NSW, southeast Queensland and the ACT, most of which are franchises, is looking at a public listing.
That has prompted suggestions the two groups could look at a tie-up.
But an LJ Hooker spokesperson said yesterday, the group has "denied the rumour".
Elsewhere, the battle for control of the $225 million Australian Industrial REIT, run by Alan Fife, and 360 Capital, headed by Tony Pitt, entered its fourth month of negotiations.
In an open letter to shareholders, Mr Fife said that Fife Capital offers a "stronger asset management platform, superior industrial property expertise and better long-term growth prospects for Australian Industrial REIT than can be delivered by 360 Capital".
According to 350 Capital it now holds 23.46 per cent of the fund and has called a meeting for ANI shareholders for May 25 to vote on ousting Fife as the manager.
