LONDON (AFX) - Shares in Reed International PLC and Elsevier NV were in focus after Merrill Lynch dismissed speculation that the Reed Elsevier group is to merge with Wolters Kluwer, dealers said.

Merrill told clients it does not believe the groups are in talks now, nor are likely to enter into talks in the near term.

At the same time, the broker reiterated its 'buy' stance on both stocks, noting that neither Reed International nor Elsevier shares partook in the sector's recent strong performance.

A recent press report cited investment bankers as saying Reed Elsevier is expected to merge with Wolters Kluwer NV by year-end, once the companies has bedded down last year's 3.2 bln stg acquisition of publisher Harcourt.

At 12.15 pm Reed International shares were down 2 pence at 590, while Elsevier shares were up 0.09 eur at 13.46.

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