Toshiba picks US-led consortium for chip business sale

Toshiba picks US-led consortium for chip business sale

Toshiba picks US-led consortium for chip business sale

In addition to being a competitive force in chips, Western Digital is also the world's largest manufacturer of disk drives, competing against Seagate Technology (STX).

Toshiba announced a memorandum of understanding with a consortium led by Bain Capital to buy its memory chip business.

Toshiba is under heavy pressure to sell the chip unit, in order to cover massive losses from its nuclear division and avoid having its stock delisted from Japan's stock exchanges. But negotiations between the two firms have stalled after Western Digital started demanding it acquire more than one-third of voting rights in the future, which means gaining veto power on crucial issues. Toshiba also denied an earlier report from Asahi Shimbun, a widely respected newspaper in Japan, that also said Western Digital had won the bidding process.

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City then travel to Watford in the Premier League and Liverpool host Burnley , both games on Saturday, 16 September. When he saw the boy bleeding, if I was in that position I would probably have made the same decision.

Earlier on Tuesday, the Nikkan Kogyo business daily reported without citing sources that Toshiba has agreed to sell the business to a consortium led by US chipmaking partner Western Digital Corp for about 2 trillion yen ($18.3 billion). Sundry Japanese companies would hold 40.1 per cent, enabling the consortium to argue that Toshiba Memory Corporation remains in Japanese hands. Previously Toshiba said three candidates were in the running: Bain, which is working with Innovation Network Corp of Japan and the Development Bank of Japan; a consortium led by Western Digital; and a consortium including Hon Hai. Morgan Stanley upgraded shares of Western Digital Corporation from an equal weight rating to an overweight rating and raised their target price for the stock from $81.00 to $120.00 in a report on Friday, April 28th.

Yoshimitsu Kobayashi, an external Toshiba director, said at a press conference on Tuesday at the Keizai Doyukai group of corporate executives, that though the deadline is important, it is also important that negotiations head in a good direction. On Saturday Patently Apple posted a follow-up report titled "The Bain, SK Hynix, Apple bid for Toshiba has been upped to $22 Billion as Decision Time Draws Nigh". During the same quarter a year ago, the company posted $0.79 earnings per share. Western Digital Corporation now has an average rating of Buy and an average price target of $111.34.

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