TAIPEI -- Asustek yesterday issued a statement denying any talks regarding a stock swap sale of its PC manufacturing arm.

Speculation in recent days centered on Foxconn as a potential buyer for Pegatron, Asustek's contract manufacturing division.

However, Foxconn, the world's largest ODM/EMS firm, has consistently dismissed reports of a possible acquisition.And Asustek submitted a statement to Taiwan's Stock exchange, on which the company is traded, dismissing any discussions.

Pegatron was formed in January when Asustek decided to focus on its branded business.