Apple has snapped a massive 2.2 million shares in Imagination Technologies, the company that manufactures the iPhone’s graphic subsystem which also produces PURE products.

Worth 3.14 million the transaction allows Apple to now own 9.5 percent of the company and has now increased its value to around £240 million. Apple is using Imagination Technologies’ PowerVR for the graphic subsystem on its iPhone and iPod Touch.

Intel also licenses Imagination’s graphics and video portfolio. This move comes just a few days after Intel upped its stakes in the company. The giant now has 32 million shares worth £30 million.

A bidding war could start a feud between Intel and one if its most important clients, Apple. However it appears that both companies are attempting to secure their long term relationships with Imagination Technologies by keeping off other potential shareholders. For further information please visit itportal.com