Last Friday's Daily Mail (19 August) claimed that St Ives was working on a 600m reverse takeover deal, which would involve it raising 100m via a "placing".
St Ives quickly issued a statement following publication of the story saying it had "not been considering an offer for its larger, unlisted peer Polestar".
Polestar group finance director Peter Johnston declined to comment on the piece.
Silchester International Investors, a UK investment house that manages funds for US pension firms, increased its stake in St Ives to just over 20% last week.
The Daily Mail claimed that the investor had given the Polestar deal its blessing. Silchester refused to comment on the story, or divulge any more information on its holding in St Ives.
Story by Darryl Danielli
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