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(Reuters) - There is no truth to a report of merger talks between retailers Target Corp TGT.N and Kroger Co KR.N, a source familiar with the matter told Reuters on Friday.

Earlier on Friday, tech focused magazine Fast Company reported that the companies are in possible merger talks, sending the shares of both companies higher.

“There is no truth to this rumor,” the source said.

Kroger spokeswoman Kristal Howard said: “We generally don’t comment on rumors or speculation.”

Kroger has a market cap of $20.62 billion and Target $37.12 billion.

Korger shares that were up 13 percent before the bell pared their gains to trade up 2.5 percent at $24. Shares of Target are up 1.5 percent at $70.