According to sources who were familiar with the process, Microsoft Corp had reduced the number of its candidates in its shortlist to replace outgoing Chief Executive Steve Ballmer. The sources told Reuters that the number of candidates had been reduced to five, with Ford Motor Co chief Alan Mulally and former Nokia CEO Stephen Elop among the finalists. Sources also added that the two of five candidates were sourced internally, including cloud and enterprise chief Satya Nadella and business development chief and former Skype CEO Tony Bates.

The sources disclosed that despite whittling the list from 40 names, the process would take a few more months. Ballmer said in August that he would be retiring within 12 months.

Microsoft refused to comment on the report. Reuters were unable to reach a Nokia representative regarding the matter.

Ford spokesman Jay Cooney said, "There is no change from what we announced last November. Alan remains fully focused on continuing to make progress on our One Ford plan. We do not engage in speculation."

Although Microsoft reported a highly profitable third quarter, the company had not been successful in the mobile computing market unlike rivals Apple Inc and Google Inc.