Imagination Technologies rallies on report of Chinese interest

Shares in chip maker Imagination Technologies rallied on Monday following a report that a Chinese private equity buyout fund was mulling a bid for the company.

According to the Telegraph, Canyon Bridge Capital Partners has held talks about a potential bid for Imagination or parts of its business. It was understood that discussions are at an early stage and Canyon is among a handful of relatively unknown Chinese investors with its eye on Imagination.

Last year, Canyon Bridge - which is based in Silicon Valley but funded by Beijing authorities - agreed to pay $1.3bn for specialised US microchip maker Lattice Semiconductor.

At 1247 BST, the shares were up 4.5% to 145.50p.