Apple: No plans to buy Imagination Tech right now
Imagination’s share price jumped nearly 20% Tuesday (March 22) on news of takeover talks (see Imagination Tech shares rise on Apple buyout report) but lost most of the gains after Apple’s statement was issued.
Apple has used Imagination’s PowerVR graphics processor cores in its self-designed processor SoCs for iPhone and iPad for many years and has held a minority stake in the UK company that stands at about 8.5 percent. However, in the last year Imagination has been reporting losses and apparently losing out to rival ARM Holdings plc (Cambridge, England).
Imagination responded to Apple’s statement by issuing one of its own, in which it said Imagination’s board of directors “values Apple very highly as an important on-going partner” and reiterated confidence in its own previously announced strategy of reinforcing three core businesses while restructuring.
Imagination Technologies: www.imgtec.com
Apple: www.apple.com
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