Wall Street rallies on Intel and ARM rumours

It seems as the share market is going down, investors are starting to grab at straws in the hope that they will float.

In this case an ancient rumour that Intel is about to buy ARM for £10 billion has been dusted off and is currently stopping the FTSE from falling further.

According to the Guardian, investors thought the deal would make sense. When HP wastes £7 billion on Autonomy, why shouldn’t Intel go completely barking and try and take over ARM? All eyes would appear to be on Cambridge as another promising property in the industrial park appeared up for grabs.

Now we have heard all this before. Only this time there is a specific share price and the deal is supposed to be being announced later today. Intel apparently wants ARM as a shortcut into the smartphone market.

Wall Street pointed out that £10 billion was a little steep for an outfit whose pre-tax profits are expected to be just short of £200m this year. Still that little rumour saved the FTSE along with the news of the fall of Tripoli.

There are some problems with the rumour, of course. If Intel bought ARM there would be huge antitrust problems which might not sit well with Europe. Even the softer FTC might actually object to Intel gaining a complete monopoly across two markets.