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Toshiba still in talks over chip unit sale one day before deadline -sources

Reuters  |  Tokyo 

Tokyo (Reuters) - Japan's embattled Corp is still in discussions with various parties over the $18 billion sale of its memory chip business just a day before its latest, self-imposed deadline, people involved in the talks told on Tuesday.

Earlier on Tuesday, the Nikkan Kogyo business daily reported without citing sources that has agreed to sell the business to a consortium led by U.S. chipmaking partner Western Digital Corp for about 2 trillion yen ($18.3 billion).

The newspaper said will announce the agreement on Wednesday and sign after a board meeting on Sept. 20.

is desperate to sell the unit to cover billions of dollars in liabilities at U.S. nuclear unit Westinghouse. The board wants the sale, beset by legal wrangling and revised bids, to be decided by Wednesday when it meets, separate people involved in the talks previously told

The people on Tuesday declined to be identified because the talks were confidential.

A spokesman said no decision has been made, and that the company will not comment on details of the bidding process.

The state-backed Innovation Network of Japan, which is part of the Western Digital-led consortium, held its investment committee meeting on Tuesday without making any decision.

Yoshimitsu Kobayashi, an external director, said at a press conference on Tuesday at the Keizai Doyukai group of corporate executives, that though the deadline is important, it is also important that negotiations head in a good direction.

As well as the Western Digital-backed consortium, which also includes KKR & Co LP, has said it is considering a bid led by Bain Capital LP and SK Hynix Inc, and one by Hon Hai Precision Industry Co Ltd (Foxconn).

Western Digital has offered to drop out of bidding and take a stronger position its joint venture with instead, but still wants a stake in the chip business in the future, people familiar with the matter previously told

The people also said objected to the possibility of Western Digital eventually seeking control of the chip business, and so has sought a limit on any future stake.

($1 = 109.37 yen)

(Reporting by Aishwarya Venugopal in BENGALURU, Taiga Uranaka, Ritsuko Ando and Makiko Yamazaki in TOKYO; Editing by Edwina Gibbs and Christopher Cushing)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, September 12 2017. 15:22 IST