Decision on Western Digital’s Bid to Block Toshiba Memory Unit Sale Postponed

Decision on Western Digital’s Bid to Block Toshiba Memory Unit Sale Postponed


A US judge did not reach a decision Friday in Western Digital’s bid to temporarily block Toshiba from selling its flash memory business in an $18 billion deal but proposed requiring Toshiba to give Western Digital two weeks’ notice before closing.

Toshiba is scrambling to sell its flash memory unit to cover losses from its nuclear reactor business.

In late June, Toshiba announced its preferred bidder was a group made up of Bain Capital, South Korean chip maker SK Hynix and Japanese-government backed banks that offered $18 billion (roughly Rs. 1,15,843 crores).

Western Digital, which is also bidding, sued Toshiba in San Francisco County Superior Court in mid-June, saying it believed a joint venture with Toshiba means Toshiba needs its consent to sell the flash business.

Western Digital’s joint venture with Toshiba helps finance equipment at Toshiba’s plants in exchange for some of their output.

Western Digital Gets US Court Order to Access Toshiba Databases, Chip Samples

Separately from the California lawsuit, Western Digital is also contesting its consent rights in an international arbitration tribunal. Western Digital filed its lawsuit in San Francisco to prevent Toshiba from closing the sale of its memory unit before arbitration has a chance to play out.

At the hearing, Judge Kahn proposed requiring Toshiba to give Western Digital two weeks notice if it believed it would close the sale before the arbitration finished.

Toshiba’s attorney said they were concerned about agreeing to be bound by the San Francisco court’s jurisdiction. Toshiba has argued that because it is a Japanese company and the deal is taking place mostly in…



Source link

Share this post

Post Comment