Tuesday, 19 September 2017
Latest news
Main » Western Digital and pals win Toshiba chip unit bid, claims report

Western Digital and pals win Toshiba chip unit bid, claims report

13 September 2017

Toshiba Corp. has once again chose to hold off on making a decision on the buyer of its chip unit at a board meeting as negotiations with a Western Digital Corp. -led group have stalled, sources said Tuesday.

Bain and SK Hynix representatives were not immediately available for comment, while Toshiba declined to comment on details of the deal negotiations. Apple also weighed in on the matter, backing three competing offers and even saying it will stop buying Western Digital products for its iPhone if the deal goes through.

Toshiba is now trying to offload its NAND unit with a consortium including Western Digital and another containing SK Hynix standing as the top bidders. The Japanese unit of Bain Capital and SK Hynix could not be reached for comment outside business hours.

The NAND flash market is forecast to top US$65 billion in 2020, up from US$40 billion in 2017, according to data from a ChinaFlashMarket.com report. The board had been seeking to decide on the preferred bidder on Wednesday, people involved in the talks previously told Reuters.

The sources said the USA company would take a step back from the initial financing consortium to address Toshiba's concerns that a Western Digital stake could lead to prolonged anti-trust reviews.

Irma roars through Caribbean as Jose and Katia strengthen
It was previously tagged at 185 miles per hour , which made it one of the strongest Atlantic hurricanes ever recorded in history. The National Hurricane Center advised the Leeward Islands , a group of islands in the Lesser Antilles, to monitor the storm.

The Bain-led group had been chosen preferred bidder in June.

The latest decision comes after Toshiba had been inclined to seal a deal with a group led by Western Digital, which has jointly invested in Toshiba's Yokkaichi flash memory plant in central Japan. Earlier this evening in Japan, news of what could be announced officially in the days to come is that the Bain bid with SK Hynix and Apple is going to be the victor for Toshiba's chip business.

In addition to the Bain and Western Digital bids, Toshiba has said it was also considering a bid led by Taiwan's Hon Hai Precision Industry Co 2317.TW , also known as Foxconn. Apple apparently said it worries about pricing.

INCJ held its investment committee meeting on Tuesday without making any decision.

Western Digital and pals win Toshiba chip unit bid, claims report