TOKYO (Reuters) - A consortium led by Western Digital Corp (WDC.O) is close to an agreement to buy Toshiba Corp’s (6502.T) $17.4 billion chip business, with the U.S. firm’s CEO in Tokyo to finalize the long and contentious talks, a person familiar with the matter said.
The consortium and Toshiba aim to announce a deal on Thursday when the board of the embattled Japanese conglomerate is due to meet, separate people familiar with the matter also said.
A deal would mark an end to months of uncertainty for Toshiba, which is scrambling to sell its flash memory unit - the world’s No. 2 producer of NAND chips - to cover billions in losses at its bankrupt U.S. nuclear business Westinghouse.
It would also be a remarkable victory for Western Digital, Toshiba’s joint venture partner for its chip business, after relations with the Japanese firm frayed to point where other bidders were chosen first and the U.S. firm initiated legal action that threatened to derail any deal.
Sources declined to be identified as the discussions were private.
Western Digital, Toshiba and a state-backed fund, the Innovation Network of Japan, which is a member of the consortium declined to comment. Representatives for U.S. private equity firm KKR & Co (KKR.N) and the Development Bank of Japan, also members, were not immediately available for comment. read the rest here