Toshiba Puts Temporary Hold on Memory Chip Sale Process
- Partner Western Digital expresses concern about transaction
- Toshiba executives believe objections are not barrier to deal
A Toshiba Corp. logo is seen on a memory module in this arranged photograph taken in Tokyo, Japan, on Sunday, Feb. 19, 2017.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
Toshiba Corp. temporarily canceled all meetings and decisions related to the sale of its memory chip business to address concerns raised by an industry partner, people familiar with the matter said.
Toshiba is trying to sell the business to raise much-needed cash, and the company has been narrowing down the field of interested buyers. That hit a snag after joint-venture partner Western Digital Corp., based in San Jose, California, said a sale may violate the companies’ contract. Toshiba’s spokeswoman Kaori Hiraki denied the sale process has been put on hold.