The companies said that the talks having been going on for some time but are still in a preliminary stage.
Both companies said that the merger was not certain to take place but that they had issued statements because of speculation in the press.
AMS had annual sales of about $500 million in 2013 and Dialog had annual sales of $900 million. Under stock exchange rules AMS has until July 24 to announce its intention to make an offer to acquire Dialog, or not.
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