Moscow. June 7. INTERFAX.RU – Japanese company Toshiba Corp has confirmed the readiness and the right to sell the unit for the production of chips of memory, rejecting the objections of his partner: Western Digital Corp.
As reported, Western Digital decided that the sale of the units Toshiba will violate the terms of a joint venture agreement that exists between the two companies. Last year, Western Digital acquired for $15.8 billion, SanDisk Corp., which has partnered with Toshiba in the manufacture of microchips, and this role was transferred to Western Digital. The Japanese authorities have refused to intervene in a dispute between two companies, giving them the opportunity to overcome differences.
On Wednesday, Toshiba sent a letter to the head of the legal service of Western Digital, which States that the volume of assets SP is less than 5% of all assets of the semiconductor division of Motorola. In addition, SP has an extremely production equipment, whereas the Toshiba unit for the production of chips as a whole has manufacturing facilities, land and intellectual property, noted in the Toshiba. Legal company Morrison & Foerster, representing the interests of Toshiba, called the actions of Western Digital “aggression”.
On the eve of the Japanese newspaper The Asahi Shimbun reported, citing informed sources, that Toshiba is ready to provide an exclusive right to negotiate the sale of the units for the production of memory chips to a consortium of American Broadcom Ltd. and investment Fund Silver Lake, offered for the business 2.2 trillion yen ($20 billion) and promised further investment in it. Meanwhile, Western Digital, which is also among the potential buyers of semiconductor business of Toshiba, are unable to offer equally interesting conditions as its competitors.
According to Bloomberg, chief Executive officer of Western Digital Steve Milligan is going to visit Tokyo this week, where she plans to submit to Toshiba an improved offer to purchase.
