This morning the city is buzzing with talk that Apple is considering a bid to take-over ARM holdings a major mobile device chip maker. In the wake of the rumours ARM's shares shot up this morning.
Apple is already ARM's biggest customer but the chip-maker also makes processors for devices such as the Blackberry and Palm Pre, two of Apple's most competitive products.
Rumours suggest that Apple could bid up to 400p a share, valuing the company at £5.2 billion ($8 billion).
One trader told the London Evening Standard, "A deal would make a lot of sense for Apple," adding, "That way, they could stop ARM's technology from ending up in everyone else's computers and gadgets."