Shell is holding early-stage talks to acquire rival BP in what would be the largest oil deal in a generation, people familiar with the matter said.Talks between company representatives are active, the people said,

British oil giant Shell on Thursday denied media reports that it is in talks to buy rival BP. The Wall Street Journal on Wednesday said Shell was holding “early stage talks,″ to acquire BP, citing people familiar with the matter.

BP shares jumped as much as 10% after the Wall Street Journal reported that rival Shell is in early talks to acquire the British oil company. Shares of BP jumped $3.11, or 10%, to $32.94 in early afternoon trading. U.S.-listed shares of Shell, which is also U.K.-based, meanwhile, slid 3%.