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.

This would be really, really bad for competition in the mobile market. I really hope this doesn’t happen.