CHIP DESIGNER MIPS has received an unsolicited offer from Ceva for $75m, which trumps Imagination Technologies' offer for the firm.
British chip designer Imagination Technologies offered MIPS $60m earlier this month and it was expected that would be the end of the matter, especially after the MIPS board of directors gave the offer its backing. Now MIPS has revealed it received an offer from Ceva for $75m for all outstanding shares in the firm.
Imagination Technologies said that it believes MIPS' board of directors is still backing its offer. The firm did not say anything about whether it would raise its offer to try to bridge the difference between the two offers.
While Imagination Technologies seems to believe everything is fine with its offer the talk from MIPS is somewhat different, despite saying that it is still recommending Imagination's offer.
The firm said, "The MIPS Technologies Board of Directors believes the Ceva proposal could reasonably be expected to lead to a superior transaction, so it has determined to engage in discussions with Ceva.
"There can be no assurances that any definitive agreement or transaction will result from the Ceva proposal or MIPS Technologies' discussions with Ceva."
Ceva is best known for its digital signal processors (DSPs) used in the audio industry. The firm's offer for MIPS could be a sign that the company wants to branch out from DSPs into designing general purpose processors. µ
Sign up for INQbot – a weekly roundup of the best from the INQ