Two of the biggest and respected technology companies in the world appear to be battling out for the control of a British company, Imagination Technologies, that specialises in mobile graphics technology.
Intel has upped its investment in Imagination Technology through its subsidiary financial vehicle, Intel Capital Corporation, and now owns nearly 7 million shares of the British tech company.
In a statement made public to the London Stock Exchange after the share purchase, Intel declared that it "reserves the right to announce an offer or a possible offer to acquire the shares in Imagination Technologies Group which it does not already own and/or to take any other action which would otherwise be restricted under Rule 2.8 of the City Code within six months from the date of this announcement if there is a material change in circumstances or in [certain events]".
Intel is already a firm backer of Imagination, which provides the semiconductor company with a license for the PowerVR technology which is found in a number of popular devices including the iPhone and Sony's Xperia X1 mobile phone.
It is not known whether Intel will be using Imagination Technologies Intellectual Property in the forthcoming Larrabee, Intel's own take at General Purpose Graphics Processing Unit.
Unsurprisingly, shares of Imagination Technologies have crept up significantly in the past few days gaining nearly 80 percent in the last 11 days alone; but is still around half the value of the share price of January 2008
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Intel knows that Apple could eventually try to acquire the company and become a fierce competitor to Intel. Apple has already purchased PA Semi and is said to be working on its own low power, high performance ARM processor family for its products.