Thai Airways International (THAI) has informed the Stock Exchange of Thailand it has not considered investing in any other airline.
THAI's chief financial officer Narongchai Wongthanavimok wrote to the SET to deny earlier reports that THAI may acquire at least a 20% stake, worth about 5 billion baht, in Thai AirAsia.
The reports have raised a few eyebrows amid questions over whether the deal would bring any benefit to the troubled flag carrier.
- IN A NUTSHELL: THAI rumours or insider trading?
Mr Narongchai wrote that THAI discussed aviation strategies with all airlines in Thailand to promote transport and tourism.
However, it had not considered any investment in any other airline, his letter said.
The clarification by Mr Narongchai on Thursday caused THAI shares to tumble 4.03% to 11.90 baht at the end of trading. The shares had rallied since Feb 15 from 8.40 baht to 12.40 baht on Wednesday.