The Lenovo Group, the fourth largest maker of personal computers, has emerged as leading candidate to acquire the troubled Palm, which makes smartphones, after other potential Asian buyers rejected the U.S. company, sources said.

Shares of Lenovo, listed in Hong Kong, rose 5.9 percent to the highest price in 23 months on Friday, helped by expectations of strong growth in the sector and speculation that could have bid for U.S. company who was among the pioneers of all smartphones.

Investment banking sources said they had been informed that Lenovo is considering a possible bid for Palm, but offered no other details.

HTC, the world’s fifth largest brand smartphones and one of the names associated with the possible deal, was approached about the possibility of a bid, but later decided to reject the opportunity to examine the accounts of Palm, said a source who has direct knowledge of the situation .

Huawei, the second biggest maker of equipment for wireless telecommunications, also refused to make an offer, a company source said last week. ZTE, smaller rival also mentioned in previous reports as potentially interested, was not sought for the transaction, said the chairman of its board told Reuters.

Representatives from HTC and Lenovo declined to comment, and officials of Palm were not immediately located.

Via: Reuters.