British mobile phone giant Vodafone said it is in talks to buy European assets of U.S. peer Liberty Global, dismissing reports the pair are planning a full merger.

"Vodafone confirms that it is in early stage discussions with Liberty Global regarding the potential acquisition of certain overlapping continental European assets owned by Liberty Global," said a statement.

"There is no certainty that any transaction will be agreed, nor as to the terms, timing or form of any transaction."

The brief statement added: "Vodafone is not in discussion with Liberty Global regarding a combination of both companies." The announcement comes one day after Vodafone announced a drop in its revenue during its third quarter -- sending the company's share price sliding 4.5 percent. The group closed up 2.4 percent on Friday at 219.5 pence on London's benchmark FTSE 100 index, which lost 0.6 percent overall.