Online auctioneer eBay has denied that it is set to mount a �1bn ($1.59bn) bid to take over UK auctioneer Sotheby's.

UK newspaper Independent on Sunday had reported the possible bid followed allegations of price fixing at the UK auction house.

However, an eBay spokesman said: "We're not buying them. There's absolutely nothing to these rumours."

eBay, which was set up in 1995, is the world's dominant online auctioneer.

Sotheby's is the world's second largest auction house behind Christie's.

The firm holds about 700 auctions every year, dealing in fine arts, antiques, and collectibles.

Price-fixing allegations

Sotheby's shares have fallen 20% since reports emerged that it and Christie's, its main rival, had fixed prices.

Authorities in the United States, the UK and Australia are investigating the allegations.

Sotheby's top two managers, Chairman Alfred Taubman and chief executive Diana Brooks, have since resigned.

Christie's has agreed to co-operate fully with the US Department of Justice, and in exchange has been granted a "conditional amnesty".

Last week, Christie's said it had discovered new information relevant to the investigation, and handed it over to the US government.

The focus of the authorities is now very much on Sotheby's.

The company confirmed that it recently met with Department of Justice officials to discuss "a prompt and appropriate resolution of this investigation".