British security firm Securicor has confirmed it in merger talks with Danish rival Group 4 Falck.
The tie-up would allow shareholders in both companies to hold shares in a newly-formed joint security business.
Shares in the combined venture, which could rival the world's biggest security firm, Securitas, would be listed in London and Copenhagen.
But Securicor, which transports money and provides security guards, said the talks were at an early stage.
Prison services locked out
The Surrey-based company, which was founded in 1935 and operates in 50 countries, said any merger would involve a newly formed UK company buying shares in both Securicor and Group 4's security businesses.
Securicor has ridden out tough trading conditions and said in December that it was looking forward to 2004 with "greater confidence".
Group 4's safety and rescue and prison management businesses would be demerged ahead of a deal and listed separately in Copenhagen.
However, the combined Anglo-Danish firm would still be smaller than Sweden's Securitas, which has a market value of about $4.6bn (£2.5bn).
In early trade on the London Stock Exchange, shares in Securicor were up 3.75p at 115.75p.
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