Toshiba has informed the lenders that it will be difficult to agree with Western Digital
The source continued the theme of the sale of the semiconductor division of Motorola. As you know, the lack of buyers present, but the company Western Digital, which is a partner with Toshiba in a joint venture for the production of flash memory, believes he has the priority right to buy.
It offers semiconductor manufacturing Toshiba 17.8 billion dollars, but according to a source, Toshiba has informed the lenders that it will be difficult to make a deal with Western Digital. However, negotiations are still ongoing, so it is possible that the parties will find the option that suits them.
At a meeting with representatives of major banks Sumitomo Mitsui Financial Group and Mizuho Financial Group Toshiba representative said that each of the potential buyers have offered no less than Western Digital. Creditors have confirmed their demand that Toshiba made the sale as soon as possible, not tightening with a negative balance.
The subject of discussion was the use of Toshiba Memory stock as collateral for new loans. Now Toshiba can’t do it because of the position of Western Digital.
Recall that Toshiba was owned 50.1% of the shares of the joint venture, Western Digital, accounting for 49.9%. In April, Toshiba transferred its interest to a specially created company Toshiba Memory. However, Western Digital was able to block the transaction, referring to the arbitration court of the international chamber of Commerce. According to Western Digital, their actions Toshiba violates the terms of the joint venture agreement.
Source: The Japan Times