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Fry was quoted as saying that, "There has been a lot of interest in Calum, but I would be mad to sell him in our current situation.
"If he left and we didn't replace him we would be certainties to go down because he is our main hope for goals.
"I told Sheffield and Gillingham that they'd need to get nearer to £500,000 for us to be interested, but they said I had no chance so I guess they won't be back.
"Clearly other managers rate Calum as highly as I do.
"He's had a frustrating stop-start season so far but he's still managed to score 10 goals and I wouldn't back against him getting another 10 before the end of the season as long as he stays fit."
However, the Gills chairman has denied making any offer for the Posh striker. Talking to the Gillingham FC official website, Scally said, "I can categorically deny that we have made a bid for the player in question, and in fact we haven't even considered an approach.
"It is true, however, that we are searching for new additions to aid and benefit the squad, but we have a strict financial budget, which decreases the number of players we can pursue once Stan has identified them as targets."