ARM Climbs 6.1% After Larry Ellison Says Oracle May Seek to Buy Chipmakers

ARM Holdings Plc, the U.K. designer of chips that power Apple Inc.’s iPhone, rose the most since Aug. 31 in London trading after Oracle Corp. Chief Executive Officer Larry Ellison said his company may buy a chipmaker.

ARM climbed 6.1 percent to close at 414.6 pence at 4:30 p.m. The shares have climbed 134 percent this year, valuing the company at about 5.48 billion pounds ($8.67 billion).

“We primarily think this is about Ellison,” said Lee Simpson, an analyst at Jefferies Intl Ltd. in London, adding that the “Oracle speculation is unwarranted” and that the company would more likely target an enterprise-focused chipmaker such as Advanced Micro Devices Inc.

Ellison, 66, said at Oracle’s annual meeting in San Francisco yesterday that “you’re going to see us buying chip companies” to add to its resources in computer hardware. In January, the Redwood City, California-based company completed the purchase of server manufacturer Sun Microsystems Inc.

“Although it’s by no means obvious that ARM is the company he has got in mind, we would argue that a takeover of ARM by Oracle would make sense,” Didier Scemama, an analyst with the Royal Bank of Scotland, wrote in a note to clients.

Alan Tringham, an ARM spokesman, didn’t immediately return a call seeking comment.

Cambridge, England-based ARM’s links to Apple make it a frequent subject of takeover speculation. The company has said repeatedly that rivals can access its technology portfolio by simply buying its products, rather than through an acquisition.

To contact the reporters on this story: Matthew Campbell in London at mcampbell39@bloomberg.net. Jeff Kearns in New York at jkearns3@bloomberg.net.

To contact the editor responsible for this story: Vidya Root at vroot@bloomberg.net.

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