Diebold contacted Wincor Nixdorf about a potential acquisition last week, according to a person familiar with the matter who asked not to be identified because the matter is confidential.

In a statement Wednesday, Wincor said staying independent is the "best course of action" and that it isn't in negotiations over a merger or acquisition. Wincor is a German company that builds hardware and software for banks and retailers, including ATMs and cash registers. It competes with Diebold and NCR in the U.S.

A representative for Diebold, whose headquarters are near Canton, Ohio, declined to comment. The Frankfurter Allgemeine Zeitung reported Tuesday that Diebold and Wincor have begun talks.

Wincor in April announced a restructuring program including 1,100 job cuts, after first-half sales fell 2% and earnings before interest, taxes and amortization declined 31% to €47 million ($53 million). The company cited slowing sales of hardware and issues in Russia and China.

Wincor used to be owned by German engineering giant Siemens before it was sold to private-equity investors in 1999. It held an initial public offering in 2004 and currently operates in 130 countries with about 9,000 employees.