City aflame with takeover talk of ARM and Xstrata

The City's gossips were pushing two tales: that Apple is considering a bid for ARM Holdings and that Vale could make an offer for Xstrata.
Of the two yarns, most investors seemed to think an approach was more likely for ARM, the Cambridge-based technology company which was recently promoted to the top flight.
The chipmaker's shares shot up 8.1p to 251.1p, topping the Footsie winners' list, as more than five million shares changed hands by midday.
Apple is ARM's biggest customer and speculation is that the iPad maker wants to take chip design in house.
“A deal would make a lot of sense for Apple,” said one trader. “That way, they could stop ARM's technology from ending up in everyone else's computers and gadgets.” Traders reckon a bid would come in at around 400p a share, valuing ARM at more than £5.2 billion.

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