Climax boss Karl Jeffrey has denied the company is to be acquired by German developer 10tacle Studios in the new year.
It also announced a move for Climax earlier this year with the intention of buying 29 per cent of the developer, but according to Jeffrey the deal was never approved.
"The 29 per cent rumour was all based on as press release 10tacle did earlier in the year which was factually wrong and not approved by Climax," said Jeffrey.
"I own 100 per cent of Climax, I have not sold or agreed to sell a single share to 10tacle or anyone else," he stated.
Climax sold its racing division — the team responsible for THQ's MotoGP and Sony's ATV games — to Disney in 2006, with the renamed Black Rock Studio currently working on two racing projects.
The latest titles from Climax include Silent Hill: Origins for Konami and the PC port of Viva PiÃ±ata for Microsoft.