Western Digital goes arbitration way over sale of Toshiba unit

Western Digital has sought international arbitration to stop partner Toshiba from selling its chips arm without its consent, potentially derailing a much-needed capital injection for the Japanese conglomerate.

The two companies jointly operate Toshiba’s main semiconductor plant but Western Digital is not a favoured bidder for the world’s second biggest NAND chip producer, having put in a much lower offer than other suitors, a source with knowledge of the matter has said.

A legal battle could delay or put an end to an auction that could fetch some $18 billion and has attracted suitors such as private equity firm KKR & Co,