- Is Broadcom (AVGO +0.8%) in or out of the driver's seat in the talks to acquire Toshiba Memory (TOSYY +3.1%)? The company no longer appears interested in buying Toshiba's NAND unit, Nomura's Romit Shah writes after an earlier meeting with CEO Hock Tan.
- That follows reports that Toshiba was considering giving Broadcom exclusive talks to acquire the business (from Asahi), and that Western Digital (WDC +0.2%) is offering to compromise on the need for a majority stake to get involved (from Nikkei).
- High capital intensity and an unappealing cyclical nature of the NAND business makes a Broadcom acquisition complicated, Shah writes, though saying the company isn't confirming or denying its lack of interest. Shah boosted Nomura's price target to $275 from $260, implying 8.2% upside, and reiterated a Buy rating. (h/t: Bloomberg)
- Nikkei says Western Digital will scrap plans to take majority control and try to make the unit a subsidiary, with an agreement to limit its stake to 19.9%.
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