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HTC rules out takeover after share plunge

Photographer | Matt Clinch

Taiwanese smartphone maker HTC is firmly against the idea of a takeover, said Cher Wang co-founder and chairperson of the company, which reported its first-ever quarterly loss on Friday driven by slumping sales amid aggressive competition in the global handset market.

"We don't need to be taken over," Wang told CNBC's Managing Asia. "Stock price is really the past. Innovation is the future. I actually never look into the price, it doesn't influence me."

"The [ability] of the company to be able to stick with (its) vision is the most important," she added.

(Read more: Tough times for the 'biggest victim' in smartphone war)

Shares of HTC have plummeted over 55 percent year to date, significantly underperforming peers Apple and Samsung, whose shares have declined 9.2 percent and 6.2 percent, respectively, over the same period. The company's dismal share price performance has prompted talks in recent months about it becoming an attractive takeover target. In August, Sanford C. Bernstein & Co identified China's ZTE, Huawei Technologies and Lenovo Group as potential bidders.

It posted a loss of T$2.97 billion ($100 million) in the third quarter, larger than an expected loss of T$1.8 billion, according to Thomson Reuters. That compares with a net profit of T$3.9 billion in the same quarter last year.

HTC, which was a leader in Android smartphone sales in the U.S. just a few years ago, is struggling to reverse its fortunes given fierce competition and pressure to get more aggressive on pricing. This has led some to wonder whether it will follow the same path as Nokia and Blackberry.

(Read more: Can 'Iron Man' star turnaround HTC's fortunes?)

BlackBerry's increasing losses and a sharp revenue decline pushed the company to accept a tentative $4.7 billion offer from a consortium led by Fairfax Financial Holdings on September 28. It has entered a six-week shop period when it can solicit other offers and enter into negotiations. In early-September, Microsoft announced plans to acquire Nokia's mobile phone business for 5.44 billion euros ($7.2 billion).

(Read more: Smartphone 'saturation' fears for Apple, Samsung)

HTC's poor performance has led to some speculation that the company may soon oust chief executive Peter Chou. However, Wang said that she does not foresee leadership changes at the company any time soon.

"Peter is a great guy. He has a lot of innovative ideas and he's very charismatic with people and also with engineers," she said.

Wang declined to comment on new products in the company's pipeline, leaving it at, "We are going to have a very interesting road map."

To watch the full interview, tune into Managing Asia on Friday at 17:30, Saturday at 18:00 or Sunday at 20:00 Singapore/Hong Kong time.

—By CNBC's Ansuya Harjani; Follow her on Twitter @Ansuya_H

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