THE Texas group has denied reports that it is in talks with Mackie International, the ailing Northern Ireland based engineering group. In a statement yesterday, Mr Michael McDonald, Texas chairman, said he wished to make it clear that he is not in discussions with Mackie.

Meanwhile, it is understood that, Mackie will make a statement early next week regarding issues surrounding the suspension of its shares.

Mr McDonald said Texas, a Manchester-based engineering group, had written to Mackie a few weeks ago "to establish whether it may be worthwhile opening discussions regarding the future of Mackie".

However, he said Texas had received a negative response pending clarification of Mackie's financial position.

Dealing in Mackie's shares were suspended on April 21st, prior to a warning from the company that the published results might have to be restated.

A cryptic five-line statement said that "certain matters have come to light which may or may not lead to a restatement of the accounts for the year ended December 31st, 1996".

The shares were suspended at 113 1/2p sterling, a 12 month low and well below the year high of 341 1/2p.

The share had dropped 10.3 per cent in the previous week.

In March Mackie announced that it had lost £437,000 sterling for 1996, compared to profits of £3.3 million in 1995, with sales down 22 per cent at £17.7 million. The loss came after an exceptional charge of £1.9 million for restructuring of the textiles operations and pension provisions. It is believed that this charge may now be increased.

The board of Texas said it had made no decision whether to enter into any discussions following clarification of Mackie's financial situation.

Mackie has undergone a major shake-up this year and in March replaced its chief executive Mr Peter Long with Mr Sul Sahota. Other management changes included Mr Pat Dougan, who is to step down as chairman at the company's annual general meeting. He will remain as a non-executive director and will be replaced by Mr Roger Looker.