Western Digital has so far failed to persuade Toshiba to his side with the buyer’s choice of the semiconductor industry

This week Toshiba has completed the message that the efforts of the Western Digital looking to buy semiconductor manufacturing Toshiba has so far proven «inconclusive».

This statement reinforced the uncertainty about the outcome of the bidding, the winner should be named next week.

Toshiba is in a hurry with the sale to cover the loss of American units operating in the field of nuclear energy. The Japanese manufacturer expects to gain at least $ 18 billion.

Some observers consider the participation of Western Digital as the key to successful deal because with the purchase of SanDisk, the company became a partner with Toshiba for the joint production of flash memory. The sale of the relevant proceedings without the consent of Western Digital, Toshiba will violate the terms of the joint venture. As you know, Western Digital has already addressed this issue to international arbitration. On the other hand, if the buyer will be Western Digital, the deal will require more scrutiny of antitrust regulators, which can unacceptably delay its completion. In any case, the partners failed to agree on terms that would suit both sides.

At the last moment, Western Digital is taking additional steps to persuade Toshiba to his side with the buyer’s choice of the semiconductor industry.

So, before expecting to receive a controlling stake, Western Digital has agreed to limit its 19.9% stake to facilitate the obtaining of the approval of the antitrust agencies.

In addition, the consortium that unites Western Digital, a Japanese Fund with state participation Innovation Network Corp of Japan and American investment firm KKR, may enter a new member. We are talking about a private investment company Bain Capital. According to some, Bain will replace KKR. At the previous stage of bidding company Bain was the partner of SK Hynix. Perhaps it will raise. It is known that the last sentence Western Digital was somewhat below the threshold of $ 18 billion, an installed Toshiba.

The other most likely buyer — a consortium involving Broadcom and Silver Lake, has offered almost $ 20 billion.

Source: Reuters

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