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) -- The chief of U.K. chip design firm

ARM Holdings


doused takeover excitement Tuesday, pointing to the poor logic behind the speculation.

ARM shares were up 4% amid conjecture that its processor patent licensing business could attract buyers like


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In an interview with British newspaper

Daily Telegraph

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, ARM CEO Warren East said it made no sense for Apple, which is already an ARM customer, to buy his firm. He added that a deal with chip giant Intel would face formidable regulatory resistance.

"ARM is a very valuable business as it is, and a significant part of that value lies in its agnostic approach," East told the paper Tuesday, referring to its role as license dealer to a broad field of chip and device makers.

ARM holds patents and designs chips for mobile devices like smartphones and tablets.

The potential acquisition interest in ARM comes as tech giants like


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have tried to outdo each other by

stockpiling intellectual property

. Google's recent $12.5 billion deal for


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had a great deal to do with the company's 17,000 patents.

ARM shares, which had been up as much as 7% early Tuesday, were trading up 4% to $25.04 at the opening bell.

--Written by Scott Moritz in New York.To contact this writer, click here: Scott Moritz, or email: Scott on Twitter at MoritzDispatch