A BED maker is still in negotiations with one of its rivals amid speculation that part of the firm could be taken over.

Dunlopillo, which employs 320 workers at its Pannal site in Harrogate, North Yorkshire, is involved in the talks with Slumberland, which has a major factory at Oldham in Lancashire.

A spokeswoman for Dunlopillo said there had never been any suggestion it would be moving from its Pannal site, stating: "Moving is not on the agenda."

She said there was no confirmation of completion of negotiations on a specific date, but talks were continuing.

Dunlopillo is one of the largest private employers in Harrogate, with a turnover of £25m.

It is believed Slumberland's Swedish parent company, Hilding Anders AB, is involved in negotiations to buy Dunlopillo's consumer plant.

Customers of Dunlopillo's mattresses and beds include Harrods, John Lewis Partnership, Allders, Selfridges and House of Fraser.