Bain Says Western Digital Legal Protest Threatens Toshiba JV
- Investor-led group buying Toshiba memory puts out statement
- Consortium open to talks if U.S. backs down from legal fight
A Toshiba Corp. logo is seen on a controller chip in an arranged photograph in Tokyo, Japan, on Thursday, Aug. 17, 2017. Under pressure from its banks, Toshiba is racing to resolve several final disagreements with Western Digital Corp. before it can complete a deal to sell its chips business to the U.S. company and other investors by the end of August, according to people familiar with the matter.
Photographer: Kiyoshi Ota/BloombergThe Bain Capital-led consortium that’s buying Toshiba Corp.’s chip unit warned Western Digital Corp. to give up attempts to overturn the deal and settle its legal claims if it wants the relationship to continue.
The Bain group agreed to pay about $18 billion for the business, but Western Digital is seeking to block the sale in U.S. courts. The San Jose, California-based company contends that as Toshiba’s joint venture partner it has contractual rights to approve any transaction for the business.