... As chipmaker ARM plays down bid interest

Shares in chipmaker ARM jumped 32 per cent to an eight-year high yesterday amid fresh rumours of bid interest from its customer Apple.

A spokeswoman for ARM said the chip designer had not received an approach, and said a takeover from Apple is unlikely. ARM has benefited from the launch of the new iPhone and strong sales of the iPad, both of which analysts say use its technology.

Apple chief executive Steve Jobs displayed a photograph of an ARM chip in the fourth-generation iPhone on Tuesday, the first confirmation from him that the firm’s technology is used in Apple products.

But Analyst Nick James at Panmure Gordon said the likelihood of ARM getting a bid from Apple or anyone else was very low. ARM stock eased to close up 5.8 per cent at 290p.