On Friday, Asus Chairman Jonney Shih said he wouldn't dismiss the possibility of buying HTC.
Such a move could help both companies: Asus has been trying to move beyond its traditional PC business into sales of Android smartphones, and acquiring smartphone maker HTC would boost its market presence. It could also provide support for HTC, which has seen its market share dwindle in the face of tough competition from Apple, Samsung Electronics and Chinese smartphone vendors.
Such arguments hold no sway with HTC, though.
"We didn't contact Asustek, and will not consider the acquisition," the company said in a posting to the Taiwan stock exchange on Monday.
With a deal out of the question -- at least as far as HTC is concerned -- both companies will need other strategies.
Asus is counting on organic growth in its smartphone business. This year it aims to ship 17 million phones, double last year's total, but still a tiny fraction of the global market. It has already started selling phones in the U.S. in a bid to reach its target.
HTC's future financial performance remains in question. Earlier this month, it revised its financial outlook for the second quarter, and said revenue would be down further than expected on slower demand for high-end phones. In the past three months, the company's stock price has also dropped by almost half.
In March, HTC founder Cher Wang took over as CEO, with the hope of engineering a turnaround. She has said the company will cut operating costs, and look for opportunities outside selling handsets.