Cisco CEO John Chambers said Cisco was unlikely to bid for Sun Microsystems, even though the company has up to $34 billion to spend on investments.
Cisco would probably have already have bid for Sun if it were interested, as the company moves very rapidly on acquisitions, Chambers said at a press briefing covered by Bloomberg.
Chambers said the company's acquisition pace would pick up during the downturn, but indicated the company hasn't shifted from its strategy of acquiring small, private companies.
Analysts had speculated that Cisco may be purchase Sun after IBM withdrew its own $7 billion bid for the company. IBM and Sun had failed to agree on a price.
Cisco shares on the NASDAQ fell 2.06% following the announcement, closing 37 cents lower to $17.56.