Memory FAQs
 
Home
News
Products
Shop
Memory
Corporate
Contact
 

News
Industry News
Publications
CST News
Help/Support
Member Area
Tester Brochure
Demo Library
Software
Tester FAQs

biology medicine news product technology definition

Monday, July 24, 2017
Memory Industry News
Email ArticlePrinter Format PreviousNext

Western Digital said it matched rival bidders' offers


Wednesday, July 12, 2017

Western Digital Corp said it matched rival bidders' offers to acquire Japanese conglomerate Toshiba Corp's flash memory unit ahead of a court hearing on Friday over whether to halt the auction process.

Western Digital, in court documents filed July 7, said it has made six proposals since February, including a proposal on June 27 matching the best offer. On June 21, Toshiba said its preferred bidder was a consortium of Bain Capital and Japanese government investors offering $18 billion.

Since February, Toshiba has been scrambling to sell its memory chip business, the second largest in the industry after Samsung Electronics Co Ltd, to cover losses from its ailing nuclear reactor division. But suitor Western Digital sued Toshiba in San Francisco County Superior Court for an injunction to stop the sale, arguing that a joint-venture it has with Toshiba at a plant in Japan means the chipmaker cannot sell without its consent.

In a filing on July 7, Mark Long, the chief financial officer of Western Digital, said the company's most recent offer on June 27, made with private equity firm KKR, "is in line with the highest competing bids for (Toshiba's chip unit) that have been reported in the press."

The actual dollar figure of Western Digital's offer is redacted from the document. Western Digital declined to comment. Toshiba did not immediately respond to a request for comment.

Toshiba has asked the court in San Francisco to dismiss Western Digital's attempt to stop the sale, arguing that the U.S. court does not have proper jurisdiction over a business that is based primarily in Japan and that an injunction would cause it irreparable harm. A hearing is scheduled for Friday.

Aaron Rakers, a managing director with Stifel, said in a note to clients on Sunday that the new filings suggest the two parties could reach a deal before the court hearing.

"Given that some negotiations between (Western Digital) and Toshiba on proposed acquisition terms started over the past month, we think a resolution could be possible prior to the (July 14) hearing," Rakers wrote.

By: DocMemory
Copyright 2017 CST, Inc. All Rights Reserved

Email ArticlePrinter Format PreviousNext
Latest Industry News
Intel surfaces complain on Qualcomm monopoly7/24/2017
China data centers up demand for advanced chips7/24/2017
UFS is wining over eMMC7/24/2017
Foundries see surge in automotive chips7/24/2017
Artificial sensibility reads and determines driver's emotions7/21/2017
Siemens built Digitalisation Hub in Singapore7/21/2017
Qualcomm sales up despite patent entangles7/21/2017
IC Insight forecasts $419 billion semi sales7/21/2017
ZTE profit up 30%7/20/2017
Samsung increased production on HBM2 DRAM7/20/2017

CST Inc. Memory Tester DDR Tester
Copyright © 1994 - 2017 CST, Inc. All Rights Reserved