Samenuk told an investment conference that he would rather continue to have Microsoft as a partner. A spokewoman later told ComputerWire: The rumor is not true. We’re not in discussions with Microsoft to acquire NAI. We’re not in discussions with any company.

Rumors of a Microsoft bid first surfaced on the reseller web site CRN.com, after anxious NAI sales staff claimed that a round of lay-offs expected on July 1 was designed to prepare the company for a sale.

July 1 is the tentative date set for the completion of the sale of NAI’s Sniffer division, at which point NAI will rename itself McAfee, and layoffs would not be unexpected. CRN’s sources argued spinning off Sniffer is designed to prepare the company for a new owner.

With a market value of just $2.8bn, NAI would scarcely make a dent into Microsoft’s cash pile and given Microsoft’s ambitions in the security market, NAI could find life tough if Microsoft evolves from being a partner to a competitor.