ALSO READBain adds Apple for last-minute $18 billion Toshiba chip unit bid - sources Bain-led consortium in last-minute $18 billion bid for Toshiba chip unit: NHK Toshiba asks Western Digital again to drop challenge to Toshiba's chip business sale Western Digital says Toshiba's actions in chip spat harm customers Western Digital says Toshiba breaching contract, wants exclusive chip talks
By Taro Fuse
TOKYO (Reuters) - Toshiba Corp now favours a group led by Bain Capital LP and SK Hynix Inc as buyer for its prized semiconductor business, as it has failed to bridge key gaps with its business partner and rival bidder Western Digital Corp, two people briefed on the matter said on Tuesday.
The Japanese conglomerate, which needs to sell the chip business to plug a huge hole in its finances, had been trying to seal a deal by Wednesday with the Western Digital group but now hopes to reach agreement with the Bain group by next week, said the sources, who declined to be identified as the talks were private.
A Toshiba spokesman said the firm could not comment on details of the talks, which have already missed two deadlines by Toshiba's banks, which want a deal to pump $18 billion or more into the company to pull it out of negative shareholder equity and preventing it from being delisted.
(Reporting by Taro Fuse; Additional reporting by Hyunjoo Jin; Writing by Makiko Yamazaki; Editing by William Mallard)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)