Apple said on Tuesday that it doesn’t plan to make an offer on British chip design company Imagination Technologies, despite earlier reports.
The Cupertino company issued a statement through the London Stock Exchange on Tuesday to put the record straight.
“From time to time, Apple talks with companies about potential acquisitions,” Apple wrote. “We had some discussions with Imagination, but we do not plan to make an offer for the company at this time.”
Stock in Imagination Technologies rose by nearly a fifth on Tuesday morning (GMT) amid rumours that Apple was in “advanced talks” to buy Imagination Technologies. Citing a source with knowledge of the discussions, ArsTechnica said Apple is interested in the company’s PowerVR line of graphics processing units (GPUs).
Following Apple’s statement, however, stock in Imagination Technology crashed to being up just 1%, prompting the company to release its own statement.
In a “response to Apple’s announcement”, Imagination Technologies wrote:
The Board of Imagination Technologies Group plc (LSE: IMG, “Imagination”, “the Group”), a leading multimedia, processor and communications technology company, notes the announcement from Apple Inc. (“Apple”) following media speculation. The Board values Apple very highly as an important ongoing partner of the Company.
The Board reiterates its confidence in Imagination’s strategy of reinforcing and building on the current strengths of its three core businesses and in further progress with its restructuring programme as communicated in its update on 17 March 2016. The Board remains focussed on delivering the best value possible to its shareholders.
Imagination Technologies, founded just outside London in 1985 and now listed on the London Stock Exchange, already counts Apple as its third biggest shareholder.
Apple announced in 2008 that it had acquired 3.6% of the London Stock Exchange-listed company, which has a market cap of £600 million, before increasing that figure to 9.5% in 2009. Intel also held a significant number of shares in the Hertfordshire-based company at one point (up to 16%) but sold the last of them off in February 2015.
Last week Imagination Technologies announced that longtime CEO Hossein Yassaie was stepping down and that an additional 200 jobs were being cut on top of 100 that had already been announced.