UPDATE 1-Bidding war for processor technology MIPS heats up

LONDON Dec 11 (Reuters) - The battle for MIPS Technologies intensified on Tuesday when CEVA said it would pay $90 million for the microprocessor operating business, trumping a bid from Britain's Imagination Technologies for a second time.

The gambit from the mobile chip designer, which said it would also pay MIPS break fee, pushed the value of MIPS 50 percent higher than the $60 million deal announced by Imagination in November.

Imagination, which had upped its offer to $80 million on Monday, said it was monitoring the situation and would provide a further update in due course.

U.S.-listed MIPS' technology is in blu-ray players, digital televisions and video games consoles such as the Sony PlayStation 2.