Apple rumoured to be in talks for ARM

Apple is rumoured to be in talks to acquire embedded processor developer ARM.

A report in the London Evening Standard suggested that the two firms were in talks on a merger deal which would bring ARM in as part of Apple Inc. The report suggested that the rumoured deal would value ARM at roughly £5.2billion (A$8.66 billion).

Soon after the reports surfaced, ARM executives moved to squelch the rumours, telling reporters that the company was 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 technology companies to gain access to our technology," Warren East, ARM's chief executive told The Guardian.

"Nobody has to buy the company."

The efforts did little to slow speculation, however. Investors pushed ARM stocks to an eight year high after the reports surfaced.

ARM has seen its profile rise 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 give a boost to Apple's current mobile processor line. The company already produces chips for the ARM platform through its 2008 acquisition of PA semiconductor.

The company currently uses its own ARM platform chips for use in its iPhone, iPod and iPad devices.