Published: Fri, September 15, 2017
Research | By Jennifer Evans

Toshiba's statement on Western Digital chip right claim

Toshiba's statement on Western Digital chip right claim

Toshiba has been in negotiations for months to sell off its chips business and pay for a disastrous move into the USA nuclear business.

Western Digital released its own statement after Toshiba appeared ready to select the Bain-led consortium as the chip unit victor. The spin-off, Toshiba explained, would still be partly Toshiba-owned but with 'an injection of third-party capital as a financial measure,' later clarified by the company as a sale of around 30 percent of the spin-off Toshiba Memory Corporation (TMC).

Toshiba yesterday said it "regrets" that Western Digital is persistently overstating its rights and that the Japanese company is committed to completing the chip sale by March.

Western Digital sought injunctive relief through the San Francisco Superior Court while its arbitration requests remain pending with the International Court of Arbitration, a Paris-based institution operated by the International Chamber of Commerce.

Toshiba Corp said on Wednesday it has agreed to focus on selling its prized chips unit to a group led by Bain Capital and South Korean chipmaker SK Hynix, although it is not ruling out a deal with other bidders.

Apple is playing the role of kingmaker in the contentious battle for Toshiba's memory chips business.

'The memory business is highly time sensitive. Moving forward, we will continue to make timely investments to expand operations to meet growing market demand.

"We are disappointed", WDC officials were quoted in a news released Wednesday, "that Toshiba would take this action despite Western Digital's tireless efforts to reach a resolution that is in the best interests of all stakeholders".

Western Digital claimed it has been "flexible" and "constructive" and submitted numerous proposals to address Toshiba's concerns, and noted "multiple courts have ruled in favor of protecting SanDisk's contractual rights". Our goal has been - and remains - to reach a mutually beneficial outcome that satisfies the needs of Toshiba and its stakeholders, and most importantly, ensures the longevity and continued success of the JVs. The company is seeking to undo Toshiba's April 1 transfer of its NAND flash memory joint venture interests to the Toshiba Memory Corp. subsidiary and prevent any subsequent sale without SanDisk's consent.

Toshiba has insisted that Western Digital has overstated its rights over Toshiba Memory Corporation, which it acquired when it bought SanDisk for $19bn a year ago.

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