Leoni has dismissed rumours that Valeo is planning to take a stake.

A spokesman told told Dow Jones Newswires Leoni had not been approached by any company.

The rumour about a potential deal between Leoni and Valeo has been circulating from time to time in the past, a trader said.

Leoni profits fell sharply in 2008 and the company has axed thousands of jobs recently but said it was in good financial shape.

It acquired Valeo’s wiring operations in January 2008.