Imagination puts itself up for sale amid Apple GPU row

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Imagination Technologies has put itself up for sale as it continues to deal with the fallout of Apple seeking to insource its GPU manufacturing.

Preliminary talks are underway with "potential bidders", Imagination said in a statement this morning after several companies expressed an interest in a takeover.

It had already put its MIPS processor and Ensigma wireless connectivity arms up for sale.

Apple shocked Imagination Technologies when it announced in April that it was planning to shift its GPU production inhouse over the next two years.

It said it wanted to use a separate design to give it a greater level of control over its products.

Imagination Technologies had been providing GPUs for Apple's smartphones, tablets, iPods, TVs and watches.

However, the company said Apple could not provide evidence that it would be able to replace Imagination's technologies without violating patents, intellectual property and confidentiality.

Imagination Technologies said in its statement this morning that it "remains in dispute with Apple".

While shares rose on the news this morning, Imagination is still trading at almost 50 percent below the levels it was at before Apple announced it was taking GPU production in-house.

Apple has also been in dispute with Qualcomm this year, with the companies at loggerheads over royalty payments.

However, in May the iPhone maker settled a long-running patent dispute with Nokia, with the Finnish company now agreeing to provide network infrastructure and services to Apple.