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Western Digital to block Toshiba sale

Tuesday, September 26, 2017 - 01:11

The chip maker is seeking an injunction to block the $18 billion sale of Toshiba's semiconductor business to a rival group led by Bain Capital. Fred Katayama reports on the latest twist in this corporate saga.

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Western Digital fighting back. It says it'll seek to block the sale of Toshiba's chip business to a rival group through an injunction. The American chip maker is a joint investor in Toshiba's main chip plant. A source says a decision on the injunction by the International Court of Arbitration could come late this year. Benchmark analyst Mark Miller said, "The companies had a chance but couldn't reach any resolution. It'll have to hit the courts. This is dragging out." This legal move comes one week after the Japanese electronics giant agreed to sell its semiconductor business for $18 billion to a group led by Bain Capital and South Korea's SK Hynix instead of to Western Digital. But that agreement remains unsigned because another member of Bain's group, Apple, has yet to agree on the terms. Western Digital opposes that deal, arguing the inclusion of SK Hynix raises the risk of technology leaks and regulatory objections. For Toshiba, it's a race against time. It needs to raise billions of dollars by March to cover liabilities from its bankrupt nuclear unit. Western Digital shares rose more than one percent at the market open Tuesday. Toshiba fell.

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Western Digital to block Toshiba sale

Tuesday, September 26, 2017 - 01:11