Shares in chip designer ARM jumped 8.4 pence to touch an eight-year high of 258.9 pence on Thursday on rumors that Apple could make a bid for the British firm.
It was ARM’s best performance since April 2002 on the FTSE 100, which shed 58.1 points to close at 5665.3 points.
ARM is a cash rich firm, whose chips are used in mobile phones and other devices including Apple’s iPhones, and it acquisition by Apple could remove ARM chips out of reach of Apple’s competitors.
But, ARM's chief executive Warren East poured cold water on rumors, arguing why the firm should be sod-off to Apple when it had market capitalisation at over 3 billion pounds.
Speaking on the topic, he said, "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. Nobody has to buy the company.”
Historically, Apple was involved in the foundation od ARM, which was a joint venture between, Apple, Acorn and VLSI. Later Apple flogged its stake in ARM with a view to make a faster buck.