Intel Corp (INTC)

[mas]

The Mail is not a reputable source, it is primarily an upmarket gossip site which likes to invent story lines to get hits.

http://www.streetinsider.com/Insiders+Blog/Will+Buying+ARM+%28ARMH%29+Be+Otellinis+Swan+Song+at+Intel+%28INTC%29%3F/7908478.html
http://www.dailymail.co.uk/money/markets/article-2239317/MARKET-REPORT-ARM-Holdings-air-dotcom-revival.html

Dealers heard whispers that off-the-record talks have been held between the two companies. Intel is desperate to acquire ARM as its chips are much faster than its own, which are in danger of becoming obsolete.

Paul Otellini, chief executive of Intel, steps down in May of next year, a crucial time for the company as it tries to win market share in smartphones and tablets, which are much faster-growing areas than its core PC market. This is expected to shrink this year for the first time since 2001.

A move for ARM could prove to be Otellini’s swan-song and word is he would be prepared to go hostile should the two boards not agree on a ‘friendly’ deal.