ARM shares leap higher on resurfacing chatter of Apple interest

Shares in chipmaker ARM Holdings rose as high as 3% late afternoon in London after a report from a Chinese news outlet pointed to US consumer tech giant Apple being a likely suitor to snap up the UK-listed company.

On Wednesday, Chinese news outlet CCID Net said Apple could table a bid for ARM at 1500p per share, citing analysts.

The report did note however that “ARM is often the protagonist of merger and acquisition rumours, so there is no guarantee that the latest market rumour must have basis in fact.”

That certainly seems to be the case with traders citing various reports in the press in recent weeks regarding the Apple for ARM speculation.

Indeed, on the 5 of February 2015, the British press reported on the chatter.

The Daily Mail said Apple may buy a strategic stake in ARM to prevent Intel's possible predatory move on ARM.

On the same day, The Independent newspaper said Apple may acquire the whole of ARM rather than selectively eyeing its divisions.

As such, traders were quick to point out that Wednesday’s resurfaced chatter is still not substantiated, though it is logical to some degree.

“Today’s chatter around ARM is not new by any means but after Shell’s move to buy BG Group, traders are latching onto bid speculation on hopes to book a profit, regardless of substance,” said a trader based in London.

He pointed out that despite France’s Vivendi denying interest in UK TV and broadband operator Sky, the latter’s shares still rose as much as 3% on the FTSE 100 index.

Neither Apple nor ARM have commented on the recent bid speculation.