The owner of the NZ Herald is seeking an injunction against Stuff's owner.
NZME is digging its heels over a potential purchase of its rival Stuff from Australia's Nine Entertainment.
The New Zealand media company has insisted it's in an exclusive negotiation with the trans-Tasman media mogul, but Nine has said that isn't the case.
Nine said talks between the two companies finished last week and resulted in no deal.
Earlier this week, NZME filed an urgent Commerce Commission application to purchase Stuff for one dollar.
NZME posted a statement to the NZX on Monday morning saying it had applied for Commerce Commission approval, and sought special legislation from the Government by end of the month to go through with the deal.
However, in its own statement to the ASX, a Nine spokesperson said "whilst Nine confirms that it has had discussions with NZME regarding the acquisition of Stuff, Nine has notified NZME that it has terminated further engagement with NZME".
The two companies, NZME and Stuff own most of the country's newspapers between them. NZME also runs a network of commercial radio stations.