The London Evening Standard reports that there have been rumors in London's financial district that Apple may be interested in acquiring ARM Holdings. ARM's shares shot up today based on the strong financial results from Apple yesterday. ARM provides the CPU designs for Apple's iPhone, iPod Touch and iPad. ARM, however, also provides the chips for a broad range of mobile phones including Android and Palm devices.

"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."

The Register reports that the takeover offer is rumored to be in the $8 billion range, which would consume almost 20% of Apple's $41.7 billion cash reserves. While a substantial portion of Apple's reserves, The Register accurately points out that this would "send shockwaves" throughout the industry, as Apple would be able to withhold such chips from its competitors.