Technology

Western Digital Corp (NASDAQ:WDC) Files Lawsuit As Toshiba Chip Sale Encounters Obstacles

The stock of Western Digital Corp (NASDAQ:WDC) closed at $82.83 gaining 3.67% in yesterday’s trading session.A rumor is circulating that Bain Capital recently offered Toshiba $19 billion for the memory chip unit, however, it declined to make the expected payments. It took a strong standpoint that the provider needed to first of all resolve the pending legal issues with SanDisk. Western Digital is the owner of SanDisk.

Over the years, SanDisk has been operating a chip manufacturing plant with Toshiba. It has launched claims outlining that its joint venture agreement gives it all rights to proceed and negotiate exclusively for the business provided Toshiba indicates willingness to sell.

South Korea-based SK Hynix is one of Bain Capital’s financing partners in the deal underway. It intends to eventually convert its investment in the business dealing into equity ownership. As a matter of fact, that would lead to the tie up of the Japanese regulatory approval.

Matters surrounding the Bain Capital deal open the possibility that Western Digital might soon emerge to be the winner of the business. The previous month witnessed Western digital come up with some six separate offers for the business. The provider’s most recent offer was indeed promising to match the highest ever recorded from Bain capital.

Reportedly, it had been indicated that by June Toshiba would have successfully closed the deal. It was confident that it would in a matter of months be able to raise enough cash that would cover billions of dollars of unexpected losses tried to the provider’s nuclear energy unit.

It must do all within its means to ensure that it closes the deal by March. Failure to that that will have the company delisted from the Tokyo Stock Exchange with immediate effect and there will be no questions asked.

The Western Digital Corp spokesperson while speaking on behalf of the provider acknowledged that the recent times had plunged them in a number of controversies. However, he expressed optimism outlining that the company would triumph and soon be able to get back to its feet.

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