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Western Digital gets U.S. court order to access Toshiba databases, chip samples


By Stephen Nellis

(Reuters) - Corp won a temporary U.S. order on Tuesday saying that Corp <6502.T> must allow Digital's employees to access databases and chip samples as part of a joint venture with around flash memory chip plants in

is scrambling to sell its flash memory business and is among the bidders.

In a sign of high tensions around the deal, threatened to lock out of shared databases and quit sending chip samples.

sued in San Francisco County Superior saying that its joint venture with means must get its consent for a sale. It asked the for two separate orders: An injunction to stop the sale, and a temporary restraining order forcing to give its workers access to shared databases.

A judge granted the temporary order for access to the shared databases Tuesday and set a further hearing on July 28.

"We welcome the decision of the court, which we believe validates our position," said in a statement.

plans to appeal the ruling, which it believes essentially provides access to technical information until the July 28, the company said in a statement.

"This is a proceeding with many rounds and many rulings, and while we are disappointed with the judge's ruling, it doesn't forecast the outcome of this proceeding or those to come," said in the statement.

A hearing on the injunction to stop the sale is set for Friday.

Despite the legal tensions between them, and resumed talks this week. also returned to talks with a group led by Taiwan's Foxconn. The renewed negotiations come after a potential $18 billion sale to Bain Capital and South Korea's SK Hynix Inc <000660.KS> stalled out.

(Reporting by Stephen Nellis in San Francisco; editing by Lisa Shumaker and Diane Craft)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, July 12 2017. 04:16 IST