Western Digital Corp is seeking international settlement to bar partner Toshiba Corp from selling its memory chip arm without its consent, which potentially hinders a capital injection for the Japanese conglomerate.
American company Western Digital is a long-standing joint venture partner in Toshiba’s main semiconductor plant in Japan. The legal conflict could delay or put an end to the auction which could garner around $18 billion and has attracted suitors. However, its bidding for Toshiba’s chip business has been outdone by Taiwan’s Foxconn and U.S. chipmaker Broadcom, according to a source familiar with the topic.
Western Digital has initiated settlement procedures with the International Chamber of Commerce International Court of Arbitration, calling for the Japanese conglomerate to reverse a decision to place its joint venture assets into a hived out entity, Toshiba Memory, and that it end the all-out sale without consent from Western Digital unit SanDisk.
Toshiba asserts that under their joint venture contract, neither of them can block a change of control by the other partner. It claims that Western Digital itself has obtained the joint venture interest when it purchased SanDisk, and also never sought or received Toshiba’s approval.
The material has been provided by InstaForex Company – www.instaforex.com
May 15, 2017 at 09:54AM
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