Grafton is not having takeover talks with Norcros, the publicly quoted British plumbers' merchants. A brief statement from Norcros said: "Contrary to recent press speculation, the company is not engaged in discussions concerning an offer for the company."

There has been speculation that Norcros was in play following the rejection of a £171 million sterling (€259 million) management takeover bid in July. Since then, it has announced a 7 per cent increase in annual profits to £15.3 million. The Mail on Sunday said Grafton was in takeover talks with Norcros. Asked to comment, Grafton referred to the Norcros statement.

Grafton has already built up a stake of almost 14 per cent in its main domestic rival, Heiton Holdings, which has its a.g.m. on Thursday.

Heiton will shortly appoint a chief operations director to manage its operations in Ireland, reporting to group chief executive, Mr Leo Martin, who took over from Mr Richard Hewat in July.

The Heiton Holdings annual general meeeting is being held on Thursday at 12 noon in the Berkely Court Hotel in Dublin and not on Wednesday as stated in yesterday's diary of the week.