A possible merger with rival Asustek Computer Inc. is not gaining consideration from HTC Corp., the Taiwan-based firm announced on Monday.
"[HTC] has not made any contact with Asus regarding this matter, and it will not consider a merger with Asus," the company posted, as a response to the comments delivered by Asustek's head on its annually held general meeting.
Last week, Asus chairman Johnny Shih stated that they will not rule out the possibility of acquiring HTC. He was said to have "chatted about the topic internally," Asus' chief financial officer told Reuters.
However, Asus clarified that currently, it has no investment plans in the struggling smartphone maker.
Since the earnings downgrade of HTC for this quarter, the company has seen a sharp fall in its stock price. Nonetheless, it posted a 10-percent share increase on Monday as a result of the alleged Asus buyout.
HTC is also facing tougher competition with tech powerhouses, Apple Inc. and Samsung Electronics Co. Ltd., resulting in a downfall in its market share. Before, the firm sold one in 10 smartphones worldwide.
On the other hand, Asus, who has been recognized as a laptop brand, has been gaining a fair share in the smartphone market with its budget-friendly ZenFone series.
A recent HSBC report also showed that Asus could reach an 89-percent year-on-year growth in smartphone shipment this year. In this case, the figure will be the highest among the major players in the market.
Meanwhile, analysts have been claiming that the Chinese smartphone market has already been saturated. As well, it has recently seen a growth decline, posting a 4.3-percent drop in shipments during the first quarter of this year, IDC reported.