According to German paper Handelsblatt and media agency Reuters, sources close to the two companies said that Manroland had called off the talks due to its rival's poor financial results.

The reports followed an announcement by Heidelberg stating that its second-quarter results would fall below expectations (9 October). Handelsblatt reported this had led to Manroland "pulling the plug" on the deal.

Shares in Heidelberg lost more than a fifth of their value, dropping 21% to €5.83 (£5.45) on the news.

One source told PrintWeek the media reports were "plausible", but added that even if such a merger was unlikely now, it may still make sense in the future.

Manroland and Heidelberg declined to comment on a matter that they maintain is a rumour.

Heidelberg said on Friday that it expected incoming orders of around €530m and sales around €500m for the quarter – at the same level as the previous quarter – and expects "no significant" increase for the immediate future.

It said this would lead to a full-year operating loss of between €110m and €150m.