Imagination Technologies Share Discussion Threads

[freddie ferret] 27/9/2017 17:01

Still think Trumps view will trump all others.

[hammerd2] 27/9/2017 16:59

Vince Cable ha ha ha !!

Oddly a new outfit took out a short on Monday - 0.94% presumably on the assumption that the deal will fall through. Couple of others took their chance to close a few bits of their shorts.

[life of crime] 27/9/2017 16:24

Politicians are fickle and the govt is in a weaker position now than when Hinkley went through. Japan is a democratic ally while China is not, so from a PR PoV it seems an easier political sell in parliament, especially if Vince Cable starts making a fuss.

Anyway, a counter bid (from whoever) could only push the price up.

[jamesrowe] 27/9/2017 16:18

Resolution 3 - is that a way of giving the non-exec chairman a bonus on the sale since if the sale goes through I can't imagine that he will have much to do or for long!!??

[freddie ferret] 27/9/2017 16:18

I think the govt will do what Trump wants.

[hammerd2] 27/9/2017 16:14

No idea why anyone should be more comfortable with Japanese owned UK based company than Chinese owned UK based company. The Chinese government already provide huge swathes of our infrastructure and CB have already made the usual soothing whale music tones about keeping everything where it is. Whether or not that is any more true than when Kraft shafted Cadburys or whoever it was is one for the politicians to get exercised about after the fact when shareholders have their cash.

[jamesrowe] 27/9/2017 16:06

AGM resolution (ii) (a) dealing with alloting of new shares:

"in connection with an offer by the way of a rights issue: (a) to ordinary shareholders in proportion (as nearly as may be practicable) to their existing holdings; "

Is that noramal AGM practice for IMG or is this something new?


Edit: Also resolutiuon 12. Can anyone explain to me in simple terms what exactly that empowers the directors to do?

Resolution 13 - is this a method by which the directors may seek to return value to existing shareholders without a dividend issue? i.e. is it associated with "The Settlement" by Apple (in the unlikely event that should occur)?? Or is it something to do with returning value to shareholders if MIPS sells but RB is unsuccessful with its bid? Seems unlikely!

[life of crime] 27/9/2017 15:41

I still think it would be an easier bid from the govt view, as a UK based firm owned by the Japanese will be easier to sell to the public than a Chinese backed bidder. I take the point about the monopoly aspect re risc though.

[life of crime] 27/9/2017 14:41

I think Arm is still an alternative bidder. MIPS would be a good fit, as Arm CPUs are geared to mobiles while MIPS is focused on embedded. Throw Ensigma into the mix and Arm get a neat IoT solution, via MIPS/Ensigma.

PowerVR could be their high/mid-end GPU solution, while Mali concentrates on low-end. Caustic would just be a bonus that might come good in a future console. Whether or not they are playing games re these "supposed" govt worries, who knows. But another 10% takes it to £2 which is peanuts for Arm. The Govt would be more comfortable with a UK bidder backed by Japan than Canyon backed by China, IMO.

[hammerd2] 27/9/2017 12:23

Scuppering the sale short term would actually be quite cheap. Simply pay Tallwood $75m to pull out at the last minute. If MIPS doesn't get sold, neither does IMG.

[hammerd2] 27/9/2017 12:15

It may only be IMG shareholders who think Apple are in trouble or worried about legal action. They may not care and may consider their case is ironclad.

I'm increasingly of the opinion we won't see any Apple 💰 and that this 60 day thing is just the time limit on the dispute resolution phase - i.e. a last chance to settle before grown adults start donning powdered wigs.

Now there's no obvious prospect of another bidder (short of someone spreading rumours of government discontent in an attempt to scupper the CB deal in order to get the price lowered) money could well now be better invested elsewhere.

[bukko] 27/9/2017 11:58

Here's a thought or two feel free to shoot down.

Apple are now in a hank and their only realistic way out is if the deal gets blocked.
To bid now would be totally cynical and irrational with their own GPU onthe way and would not look well in court. A battle with China is one they can't win in the long term as more harmful retribution could follow.

The business case for IP relies on a one-to-many model and like H2 I am surprised that Google has not expressed an interest. I addition to their pathfinder showcase phone they could license all of the IP across the Android system.They might be a bit wary of of China too but if IMG was incorporated as an independent subsidiary in England that might quell any political concerns. They could also (unlike the problem with Apple)assure continuity for customers.

The bit I don't like is the convoluted complexity surrounding the possibility of a further return to shareholders which is time limited to boot. It has all the ingredients of a mirage. And what if compensation from Apple is in the form of say a lump sum and on going royalties /patent indemnity. Will the latter be commuted into a capital sum for shareholders?

At present shareholders have no visible skin in that game. How about we put some skin in the game by accepting a small reduction in the offer price and putting that reduction amount in a litigation fund with CB. All in return for a better potential deal than the one on offer while sharing the risk.Any chance that the share price is reflecting such moves behind the scenes by major long term institutions? Probably not. There you go ,my thoughts anyway.

Maybe things will turn out better than expected and Apple will volte face and be nice for a change to get out of their hank ASAP. They might say "how much do you guys want? "ok its a deal" and remember to say "thank you" on their way out?

I wish. And no pig gifs please :-)

[hammerd2] 27/9/2017 11:52

Last thing anyone wants is the Chinese military getting their hands on excellent graphics ! Phew. What a load of old 5407708.

Shareholders needn't worry too much I don't think. Non-shareholders of course shouldn't give a toss.

borromini - that news is in the RNS on this page ref update on sale of MIPS.

[milesy] 27/9/2017 11:38

Surely ARM was the more relevant precedent where govt failed to act. To do so here would be rather contradictory, but hey, we're talking politics so....

[borromini1] 27/9/2017 11:33

Thanks metis20, RNS not showing on IMG website yet.

[orkney] 27/9/2017 11:21

Are a conservative government really going to step in & nationalise img to save it, i doubt very much as that's what it would take to save img in the absence of any other interested party!?

[borromini1] 27/9/2017 11:03

Adventurous + James Rowe - where does it state that the second potential offeror has now confirmed themselves not interested? Have you received a circular?

[jamesrowe] 27/9/2017 10:45

Another 8.5 notification from CitiGroup acting for CB. 2 million shares purchased and 3.5 million sold. Does anyone have any ideas??


I saw an amusing mis-spelling of Canyon Bridge as "Canton Bridge" yesterday. I suspect that it was not completely accidental.

[jamesrowe] 27/9/2017 10:08

and also why the major shorters have not reduced their positions at the current lower price than the offer price. Perhaps they think that the risk of paying an addition 10p (plus settlement if any) if the deal goes through is outweighed by the potential gain if the deal falls through.

[twatcher] 27/9/2017 09:45

MIPS at this time isn't a separate company, it's owned by IMG, who are a UK company. Logic would indicate that the US can no more block MIPS from being sold, than they can block IMG from being sold.

Why the share price is still below the offer price, is however curious.

[adventurous] 27/9/2017 09:41

metis20 - where can anyone find that (non fca) data?