Coopers & Lybrand denied this week that its merger with Price Waterhouse could see 850 partners axed, while senior partners of Arthur Andersen and Deloitte & Touche united to damp down speculation that they too were involved in merger talks.

Coopers dismissed a high-ranking partner?s speculation that partner jobs were at risk as ?without foundation?, insisting jobs would be created.

On Friday, both Deloittes and Andersens denied a Wall Street Journal report that talks between them stalled, due to continuing uncertainty about the relationship of Andersens? accounting and consulting wings.

J Michael Cook, Deloittes US-based chairman, said: ?The rumour that Deloitte & Touche and Arthur Andersen have had, or are having merger discussions, is false.

?Since Deloitte & Touche formed in 1989, we have never had merger discussions with Arthur Andersen. Today?s story was based on sources that are false. We are not interested in global merger discussions.?

Andersens managing partner Jim Wadia issued a similarly worded statement. According to UK sources, it is possible that senior partners of Deloittes and Andersens did meet, if only to discuss how they might lobby the US Department of Justice against the other merger proposals.

Partners of both ^rms in the UK said that a merger did not make sense. As well as emphasising the cultural differences, partners at each ^rm said they expected to pick up staff and clients that fell between the cracks of the proposed mergers between PW and Coopers and KPMG and Ernst & Young.

?There?s no reason for a merger. It doesn?t ^t with our strategy,? said Paul Williams, computer risk management partner at Andersens. ?We?re keeping our eyes and ears and doors open for any staff, partners or clients that fall out.?