British supercar maker and racecar developer McLaren Technology Group has refuted a report claiming it is talks with tech giant Apple ahead of a possible takeover.
A McLaren spokesperson has told Street Insider that the earlier report, published in the Financial Times, is incorrect.
“We can confirm McLaren is not in discussion with Apple in respect of any potential investment,” the spokesperson told Street Insider.
The initial report drew from three sources with alleged knowledge of the company’s actions, which gives it significant credence. FT reporter Tim Bradshaw has tweeted that the publication stands behind its story, despite McLaren’s statement.
Those sources told the Financial Times that talks between the two companies have been ongoing, with Apple angling for either a full takeover or a strategic investment. The talks reportedly began “several months” ago.
A takeover or partnership between the two companies makes sense, as McLaren is a technology powerhouse. Its in-house designed electronic control units are standard equipment on all Formula One entries, while its hybridization technology and work with carbon fiber construction is cutting edge.
Meanwhile, Apple’s shadowy self-driving car program has undergone significant changes in scope, with an emphasis placed on technology development. Apple’s interest in McLaren would be understandable.
The sources told FT that McLaren would be worth $1.3 billion to $1.9 billion in the event of a takeover. The company posted a $27 million net profit in 2015, from $617 million in revenue. It also recently pledged to invest $1.3 billion into research and development over the next six years.
(Note: this post has been updated to reflect new information)
This article originally appeared on Thetruthaboutcars.com