ARM share price boosted by speculation over possible buyout

on Apr 9, 2015
Updated: Oct 21, 2019
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Shares in ARM Holdings Plc (LON:ARM) jumped yesterday, boosted by speculation that it might be a possible takeover target of US tech giant Apple Inc (NASDAQ:AAPL). The rumours come amid significant M&A activity in the technology sector, which has seen two multi-billion dollar deals in the past two months alone. At the beginning of March,NXP Semiconductors, a Dutch company specialising in chips used in debit and credit cards, bought smaller US rival Freescale for $11.8 billion. Meanwhile, Intel Corp is currently in talks to buy Altera, a maker of “programmable” processors, in a deal that could exceed $10 billion. Analysts and investors seem to think ARM could be next.

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The Cambridge-based chip designer is the dominant force in the mobile market, with its technology responsible for powering around 95 percent of the world’s smartphones. ARM is also Apples largest supplier and its products have been essential for the success of the US company’s most important product, the iPhone. Taking these factors into account, some analysts have suggested that Apple may be interested in acquiring a strategic stake in ARM in order to protect its bond with the UK firm and fend off possible rival interest from Intel. It is thought that Apple would have to pay around £15 to £16 a share to secure a deal.
Having touched 1,140p earlier in yesterday’s session, ARM’s share price eventually closed 1.9 percent higher at 1,123p. In today’s trading, ARM shares have continued their advance and were up 2.1 percent at1,147.00p, as of 08:43 BST. The stock has risen 15.3 percent since the start of the year and the company’s market capitalisation currently stands at £16.2 billion.
As of 11:11 BST, Thursday, 09 April, ARM Holdings plc share price is 1,141.50p.

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