Sources close to private equity firm TDR Capital, the owner of 333-strong Stonegate Pub Company, have denied rumours that it is looking to acquire TCG.
A TDR source said: "TDR is looking at everything, but there is no work going in with respect to TCG at the moment."
TCG operates 107 mainly high-street sites and is owned by fellow private equity player Alchemy Partners.
TCG was founded in 2005 with the acquisition of 178 Spirit pubs for £177m.
The company, a mixture of freeholds and leaseholds with mainly commercial landlords, is now focused on three primary market sectors — local pubs, young people's venues and "quality" venues.
TDR's denial of interest in TCG comes as work to merge with Town & City Pub Company "progresses well". Town & City's owners Commerzbank and Kaupthing have instituted a recruitment freeze as it looks at the merger plan.
It has also moved to separate the management of its La Tasca tapas chain from Town & City. Simon Wilkinson, the former Kout Food Group (KFG) and Paramount Restaurants executive, is taking the helm at La Tasca in February.