It'd make more sense if Intel will lend it's licensing plants to ARM.
Intel could offer cheaper designs, and smaller manufacturing processes.
An ARM-Intel joint venture would be very profitable for both companies.
Instead of fighting eachother, fighting alongside of one another will be the right thing to do, and produce intel-arm branded designs!
If both companies could only agree to share each other's strengths, like ARM lends it's ARM technology, and intel it's extruded processor design, together with perhaps something similar to hyperthreading, turbo boost technology, SSE for ARM (if that could exist), and perhaps even out of order if that could exist on ARM.
Also, upcoming intel designs will rather be x64 than x86.
They know how to provide for stuff people don't need, even on their cellphones.