Apple has confirmed that it held takeover talks with struggling British chip-maker Imagination Technologies.
In a statement to the stock market, Apple, which owns nearly 10% of the smaller firm, said a takeover had been discussed.
“From time to time, Apple talks with companies about potential acquisitions,” it said. “We had some discussions with Imagination, but we do not plan to make an offer for the company at this time.”
The statement followed reports that the companies were in advanced negotiations about a takeover of Imagination, which makes chips used in Apple products including the iPhone. They are understood to have held takeover talks on several previous occasions.
Any deal would echo the £195m takeover of PA Semi in 2008, which allowed the US company to bring one of its chipmaking suppliers in house.
Imagination Technology, which has a stock market value of more than £500m, has been restructuring its business after successive profit warnings and a change of chief executive. It said the process was likely to involve the sale of its Pure business, which makes digital radios.
It is also cutting its staff headcount by 350 as it seeks to reduce operating costs by £15m by next year, as it aims for a target of £27.5m in savings by the end of next year.
Shares in Imagination Technologies rose in early trading on Tuesday amid rumours of a takeover, but the gains were cut back after Apple said no deal was yet on the table.
