* Shares up as much as 32 pct to 8-year high
* Traders cite renewed talk of Apple bid interest
* Company says not approached, deal would not make sense
(Adds analyst comment, background)
By Paul Sandle and Simon Falush
LONDON, June 10 Shares in ARM Holdings Plc
ARM.L jumped as much as 32 percent to an eight-year high on
Thursday, with traders citing renewed talk of bid interest from
its customer Apple Inc (AAPL.O).
By 1023 GMT, ARM was up 11 percent at 303.4 pence, after
touching its highest level since 2002 at 362.4 pence.
The rumours have surfaced previously, most recently in
"Hearing (an) old rumour that Apple want to bid for them,"
said one trader.
A spokeswoman for ARM said the chip designer had not
received an approach, and said a takeover from Apple would not
make sense, reiterating comments made by its CEO Warren East in
April and its President Tudor Brown last month. [ID:nLDE64J289]
Apple was not immediately available for comment.
ARM has been benefiting from the launch of the new iPhone
and from strong sales from the new iPad, both of which analysts
say use ARM technology.
Apple CEO Steve Jobs displayed a photograph of a chip in the
fourth-generation iPhone on Tuesday, with ARM's name clearly
visible, which was the first confirmation from him that ARM's
technology is in Apple products. [ID:nN07100602]
Analyst Nick James at Panmure Gordon said the likelihood of
ARM getting a bid from Apple or anyone else was very low in his
view, as the company's business model was based on licensing its
technology to a large community of chip makers.
Customers were already developing chips based on ARM
technology for launch in three to four years, he said, and would
have ample time to then switch to rivals like Intel (INTC.O) or
He said he thought the real driver of ARM's rise was an
increasing bullishness on the prospects for the tablet market,
ignited by the iPad.
"The response to the iPad has been well ahead of
expectations, and it isn't taking long for people to start to
realise the potential of this class of device," he said.
"As we have previously said, we believe over the long term
-- 10 years -- it could approach the ubiquity of the mobile
(Additional reporting by Jon Hopkins and Brian Gorman, editing
by Will Waterman)