Foxtons is in talks to takeover rival London agency Douglas & Gordon.
A statement from Foxtons to shareholders this afternoon says: "Further to recent press speculation, Foxtons confirms that it is in discussions regarding a potential acquisition of Douglas & Gordon, the London based estate agent. These discussions reflect the Company's stated ambition to acquire high quality businesses with strong lettings books. Any potential acquisition would be funded by the Company's existing cash resources. There can be no certainty that an acquisition of Douglas & Gordon will be completed."