DLJ, the private equity arm of Credit Suisse, is in talks to buy engineering company Morgan Crucible Co for around 925 million pounds, a source familiar with the matter said.
The source added on Saturday, however, that the talks could yet fall through and that any agreement was unlikely before the second half of next week.
The Financial Times and Independent newspapers had said that Morgan Crucible, which makes ceramics and defence materials, was expected to unveil a deal at about 315 pence a share next week.
Shares in Morgan Crucible, which said early in August that it had received a takeover approach, closed at 300p on Friday.
Morgan Crucible and Credit Suisse declined to comment.
On Thursday, Germany's SGL Carbon AG said it was not in talks about any deal for Morgan Crucible.
The Independent said potential buyers were attracted by the healthy cash position of the company and its solid position in key markets.
(Additional reporting by Siobhan Kennedy and Mathieu Robbins)