Intel counters Apple’s Imagination stake
Interest in Imagination Technologies is hotting up, with Intel increasing its interest in the UK graphics firm after it emerged last week that Apple bought a stake.
Chip giant Intel confirmed it had increased its stake in Imagination Technologies yesterday in a filing with the London Stock Exchange (LSE), only a day after Apple bought a 3.6 per cent stake in the firm.
The Hertfordshire-based firm licences its graphics systems-on-chip (SOC) intellectual property to both US computing firms alongside the likes of Samsung, Sharp and NEC.
Imagination is also known for its Pure brand of digital radios and developments around digital audio broadcasting (DAB) standard technologies.
But when it emerged late last week that Apple had paid £3.2 million for 8.2 million shares and a 3.6 per cent stake in the firm, speculation centred on safeguarding its investment in the technology that Imagination supplies the PC maker to use in its 3G iPhone graphic chips.
Intel licences Imagination’s POWERVR range of visual internet protocol (IP) technologies, as well as its SOCs, for a number of its processors including the Atom.
And its Monday LSE filing revealed it had bought a further 934,422 shares in Imagination through Intel Capital, raising its total stake in the UK firm to 6,934,422 shares, or three per cent to counter Apple’s new 3.6 per cent stake.
The chipmaker also stated it would be prepared to put in a bid to acquire Imagination if any other company made an offer for it.
But, like Apple, Intel also said it had “no current intention to make an offer for Imagination Technologies”.
Imagination’s shares closed 21 per cent higher on Monday’s news of Intel’s investment, rising £0.11 to £0.64 per share.
But the UK graphics firm had not responded to a request for comment at the time of writing.