Pannone has moved to quash rumours it has held talks with Irwin Mitchell over a potential merger deal, as the latter prepares to unveil solid financial results for 2012-13.

Speculation over a potential tie-up has been circulating in recent months, with one senior partner at a rival national firm telling Legal Week that many of his Manchester partners believed a merger of the two firms was a "done deal".

However, Pannone managing partner Emma Holt rejected the suggestion any talks had taken place, telling Legal Week: "We have not been nor are we currently in any discussions with Irwin Mitchell."

While Irwin Mitchell declined to comment, partners within the firm were keen to distance themselves from the speculation.

The two firms have similar business lines, with both operating personal legal services (PLS) divisions alongside a commercial business (BLS) offering. Irwin Mitchell is known to be keen to bolster its personal injury practice, an area in which Pannone has particular strength.

Irwin Mitchell's turnover for 2012-13 is expected to come in at around £200m, with the firm estimating its PLS division to have taken in £150m over the financial year, alongside £40m from its BLS division. Last year the firm posted total turnover of £183.7m.

Irwin Mitchell's firmwide revenue total also includes subsidiaries such as debt collection agency Ascent and claims handling company Coris. In November the firm predicted Ascent would take in total turnover of around £5m in 2012-13 following its acquisition of debt collection agency PDP Management Services.

Meanwhile, Pannone last year posted turnover of £46m. According to its 2011-12 LLP accounts, the firm carried debts due within a year of £23.9m, with a further £8.7m due the during following 12 months. Bank loans and overdrafts contributed £14.5m to these totals.

A combined firm would boast around 3,000 employees and around 250 partners. Both firms currently have offices in Manchester and London while Irwin Mitchell also has further bases in Birmingham, Glasgow, Leeds, Newcastle, Bristol and Sheffield as well as a consulting office in Leicester and two offices in Spain.

The two firms are historically linked through the joint venture partnership of Pannone Napier, set up by ex-Pannone chief Rodger Pannone and former Irwin Mitchell senior partner Michael Napier, which dissolved in 1994.

The news comes as Irwin Mitchell has promoted former DLA Piper Manchester chief Roy Beckett to head up its BLS team in Manchester. Beckett, who joined the firm in February as part of a 14-strong real estate team from DLA, takes over the role from John Lord, who will focus on growing the office's dispute resolution and insolvency offering.