It has been reported that HTC who are the worlds no 5 in Smartphone brands will not be bidding on Palm, after they have reviewed the company’s numbers according to a recent report over at reuters.com

We covered this earlier today which can be viewed here. This leaves really just one company PC brand Lenovo, the only major Asian bidder who are expected to show an interest in making a bid for Palm.

Both the HTC Chief Financial Officer Cheng Hui-ming and Lenovo spokeswoman Angela Lee have declined to comment, also Palm officials were not available for comment as it was outside of usual United States working hours.

An analyst has said that it is good that HTC have or are dropping it because Palm has been losing money for a while now and the two companies share a similar profile. A more suitable candidate will be mainland China companies because they have a lot more free cash and don’t have the brand presence in the US yet.

So it seems the general opinion is that the only option left is Lenovo who had more that $2.4 billion in net cash reserves at the end of 2009. The sale of Palm could fetch somewhere around $1.3 billion when taking into account its current $1 billion market capitalisation. So are the numbers looking good for Lenovo? Will they be bidding on Palm share your opinions with us.