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Toshiba keeps portion of chip unit to remove Western Digital hurdle

Published 05/31/2017, 03:31 PM
© Reuters.  Toshiba keeps portion of chip unit to remove Western Digital hurdle
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  • Toshiba (OTCPK:TOSBF, OTCPK:TOSYY) will keep some of its chip unit in-house while continuing to seek a buyer for the rest. The move is meant to waylay Western Digital’s (NYSE:WDC) attempted block of the chip unit sale, which could net Toshiba $20B.
  • Western Digital gained a stake in the chip unit following last year’s purchase of SanDisk and had said that Toshiba doesn’t have the right to sell the unit without approval. Toshiba disagrees and now plans to keep any chips that could fall under a rights claim by Western Digital.
  • Potential chip unit buyers include Sharp with parent company Foxconn and Broadcom (NASDAQ:AVGO) Limited.
  • Toshiba shares are down 7.8%.
  • Western Digital shares are down over 1%.
  • Previously: Western Digital takes Toshiba to arbitration (May 15)
  • Now read: Should Broadcom Buy Toshiba Memory?


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