June 2 (Bloomberg) -- Harris Corp., the 113-year-old maker of military radios whose shares have risen on speculation it is an acquisition target, isn't seeking a buyer or merger partner, Chief Executive Officer Howard Lance said.

``We are not pursuing, discussing, or examining a sale or merger of Harris,'' Lance said in an interview. ``From time to time, it's accurate to say that we have been approached by other companies that see our track record, see our brand and see synergies.''

Harris shares have risen 36 percent since March in part on speculation about a possible takeover. Melbourne, Florida-based Harris received preliminary offers valued at about $10 billion, less than the $75 to $85 a share it expected, the Wall Street Journal reported last week, citing unnamed people familiar with the situation. Lance declined to say whether the company received offers recently or discuss the potential value.

Harris is ruling out a sale or merger because the ``rumors'' were affecting the company, its employees and ``fueling speculation in the stock,'' Lance said. He also wouldn't comment on the timing of any board meetings or discussion.

Harris rose 6.2 percent to $65.78 in New York Stock Exchange composite trading on May 30, the day of the Journal report. The stock is the second-best performer in the past month among 11 members of the Standard & Poor's Midcap Communications Index, with a 22 percent gain. F5 Networks Inc., a maker of equipment to manage Internet traffic, led with a 23 percent gain.

Harris Sales

Harris has benefited from demand for battlefield radios and communications systems during the Iraq War. Its sales doubled to $4.24 billion for the year ended June 2007 from $2.1 billion in 2003. Harris received $6.2 billion in orders from the U.S. Army, Air Force and Navy from the start of the war in 2003 to September 2007, according to Defense Department contracting data.

Larger defense contractors General Dynamics Corp. and Northrop Grumman Corp. were among the possible companies interested in Harris, the Journal reported last week, citing analysts it didn't identify. Spokesmen for those companies declined to comment on the report.

Lance said the company's ``diversified strategic plan'' already has taken into consideration a reduction in U.S. troop deployment in Iraq or a slowdown in defense spending. Harris's commercial broadcast equipment business and its work for government clients including the Federal Aviation Administration and the Census Bureau are ``very promising,'' Lance said.

``We believe our focus on continuing growth through the introduction of industry-leading new products, expansion of addressable markets, development of new capabilities, international expansion, and strategic acquisitions will deliver significant value,'' Lance said.

Lance, 52, joined Harris as chief executive in January 2003 and was also named chairman in June 2003.

To contact the reporter on this story: Gopal Ratnam in Washington at gratnam1@bloomberg.net.

Last Updated: June 2, 2008 00:01 EDT