At the company's annual general meeting, Asus Chairman Johnny Shih reportedly said he wouldn't rule out such a deal.
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Chairman Johnny Shih expressed his openness to such a deal when asked at the company's annual general meeting, Chief Financial Officer David Chang told Reuters on Friday.
A deal between the two Taiwanese consumer electronics companies would bolster Asus's own portfolio and strengthen its efforts in that arena. While Asus makes smartphones, it's better known for its PCs. In the western markets, Asus could also tap into HTC's more recognizable brand.
But Chang wasn't high on the prospects of an acquisition.
"Still, the chances of an actual takeover are not big as (Asus) is a company that has depended on organic growth," he told Reuters.
Speculation over HTC getting purchased jumped after the company cut its revenue forecast for the second quarter. Its stock fell 20 percent over Monday and Tuesday after posting its warning, according to Reuters.
HTC has continued to struggle in the premium smartphone range, where its HTC One M9 competes against the iPhone 6 and Galaxy S6. The company lacks the marketing might of its two larger rival.
Asus didn't immediately respond to a request for comment.
HTC declined to comment on the report.
"As an international brand, HTC will continue to design world-class innovative smart devices through its pursuit of brilliance brand promise," said Jeff Gordon, spokesman for HTC, said in an e-mail statement.