"There was no discussion of acquisition" during negotiations of a pact that will have Nokia phones running Windows Phone 7, Elop said at a crowded news conference on the eve of the Mobile World Congress here.

"The best approach for Nokia was to enter into a deep partnership, but to respect that there's a huge chunk of Nokia that's not in [Microsoft's interest]," he added.

Several analysts have suggested that the Nokia-Windows Phone partnership could lead to Microsoft buying the Finnish firm. Analysts said that despite the high cost of such an acquisition, the centrality of mobile devices such as smartphones and laptops to the emerging computing and communications landscape could make it successful.

Also, analysts noted Microsoft would capture Nokia's distribution and manufacturing capabilities, providing a huge boost to its efforts to increase its small share of the smartphone market.

Elop acknowledged he had heard the speculation about a possible purchase of his firm.