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Reuters: Tech industry casts doubts on Toshiba’s lead chip unit bidder

Published 06/22/2017, 09:12 AM
© Reuters.  Reuters: Tech industry casts doubts on Toshiba’s lead chip unit bidder
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  • Tech industry insiders have doubts that the Japan-backed consortium Toshiba (OTCPK:TOSBF, OTCPK:TOSYY) chose as its chip unit winner can successfully manage the unit, according to Reuters.
  • State-backed fund Innovation Network Corp of Japan leads the consortium but has a mixed history with saving tech companies. Chipmaker SK Hynix belongs to the group but can’t participate in management due to antitrust laws.
  • "No one in the consortium knows the management of the memory chip business as SK Hynix would stay in the background," says a senior Toshiba executive.
  • Rumors emerged that the consortium was inviting Western Digital (NYSE:WDC) into the mix to thwart the company’s attempts to block the chip unit sale in court. But Western Digital could also provide more management assistance and knowledge.
  • Previously: Toshiba chip unit winner offers Western Digital a place at the table (June 21)
  • Now read: Is It A Tech Bubble All Over Again?


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