According to German paper Handelsblatt and media agency Reuters, sources close to the two companies said that uncertainty now surrounded the rumoured merger, following an announcement by Heidelberg last week stating that its second-quarter results would fall below expectations.

Shares in Heidelberg have since lost more than a fifth of their value, dropping 21 per cent to €5.83 ($A9.50) as of yesterday.

Handelsblatt reported that this had led to the two companies "pulling the plug" on the deal.

One source told PrintWeek the media reports were "plausible", but added that even if such a merger was unlikely now, it may still make sense in the future.

Heidelberg and manroland declined to comment on what they maintain is just a rumour.

Heidelberg said on Friday that it expected incoming orders of around €530 million ($A863m) and sales around €500m ($A815m) for the quarter – at the same level as the previous quarter – and expects "no significant" increase for the immediate future.

It said this would lead to a full-year operating loss of between €110m and €150m ($A179m and $A244m).

Read the original article at www.printweek.com.

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