Apple linked to £5.2bn purchase of ARM Tweet

Chipmaker denies rumours of impending merger.

Apple is rumoured to be in talks to acquire embedded processor developer ARM in a deal worth a reputed £5.2bn.

A report in the London Evening Standard suggested that the two firms are discussing a merger deal that would make ARM part of Apple.
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ARM executives moved quickly to squash the rumours, telling reporters that the company is happy with is current structure and business model.

"Exciting though it is to have the share price pushed up by these rumours, common sense tells us that our standard business model is an excellent way for companies to gain access to our technology," Warren East, ARM's chief executive, told The Guardian. "Nobody has to buy the company."

The effort did little to slow the speculation, however, and investors pushed ARM stocks to an eight-year high after the reports surfaced.

ARM's profile has risen considerably in recent years with the growth of the handset market. Manufacturers looking for sophisticated low-power processors to power new smartphone models in particular have favoured ARM chips.

If Apple were to acquire ARM, the deal would boost Apple's current mobile processor line. The company already produces chips for the ARM platform through its 2008 acquisition of PA Semiconductor.

Apple currently uses its own ARM platform chips in the iPhone, iPod and iPad lines.

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