British tech company Imagination revealed in February that it would be restructuring the business in an effort to cut costs, with the loss-making Pure radio business put up for sale.
Ars Technica reported today that Apple was in talks to buy the entire Imagination Technologies company, with an eye on its main business of graphics processing chips, which have previously been used in Apple products.
Apple has since moved to quash the rumours, releasing a brief statement to the London Stock Exchange: "From time to time, Apple talks with companies about potential acquisitions. We had some discussions with Imagination, but we do not plan to make an offer for the company at this time."
The Imagination Technologies share price leapt by 20 per cent after the rumours of a possible buy-out, but the price has dipped to around 6 per cent up on its opening price following the release of Apple's statement. As yet there's no further news on Imagination Technologies or indeed the Pure radio business.
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