Tuesday, July 11th 2017

Toshiba and WD Power Struggle Continues - WD Bid for Toshiba's Business 6 Times

You must remember the ongoing house of horrors that is Toshiba's financial situation. Granted, it isn't that bad - the company is still managing to push the envelope on its semiconductor production business. Still, I'm sure the company would have liked to not be on the verge of selling out 20% of its memory business production stake - which is one of the company's most profitable divisions to begin with.
After recently electing a preferred bidder for its memory production business (which wasn't Western Digital, by the way), Toshiba has come forward with a court filling accusing WD of trying to continuously interfere with the currently ongoing bidding process. Now, WD has fired back, filing documents in court that show it has made a sensible six bids towards Toshiba's semiconductor manufacturing business 20% stake, and that such bids have been in line with other bidder's offerings (which means $2bn or more.) According to WD, this removes any Toshiba allegations regarding WD's wrongdoing, which could have happened, if WD, Toshiba's main technological partner, were offering bids dangerously lower than other interested parties - which would almost certainly bring other bids down.

Western Digital has also rejected any ideas of a bidding consortium with SK Hynix, on grounds that their competitor's technology and manufacturing capability is one or two years behind WD's own - and that it isn't responsible for propping up a competing company. In yet related news, it would appear as if Toshiba managed to snag $6bn funding in a loan late last week, using TMC (Toshiba Memory Corporation) shares as collateral. Western Digital Corporation seems to think this is foul play and not playing in accordance with the terms of the joint WD-Toshiba venture, which probably means yet another filling incoming. It's just a rodeo of courts over here.Source: The Register
Add your own comment

2 Comments on Toshiba and WD Power Struggle Continues - WD Bid for Toshiba's Business 6 Times

#1
DeathtoGnomes
Sounds like a fishing tournament, ya just cant tell who hooked who. :kookoo:
Posted on Reply
#2
evernessince
So Toshiba found alternate sources of funding and WD is mad. Unless they signed a contract saying they have to go through WD, I don't see the problem here.
Posted on Reply