Western Digital (NYSE:WDC) releases a new FAQ document hitting back at some of the claims surrounding Toshiba’s (OTCPK:TOSBF, OTCPK:TOSYY) chip unit sale to the Bain-led consortium.
The company maintains that it has contractual consent rights to the sale and notes that Bain hasn’t reached out to Western Digital as Bain had claimed.
Western Digital reiterates that Toshiba doesn’t have the right to complete the Fab 6 NAND manufacturing without Western Digital’s participation.
The company also shoots down Toshiba’s contingency plan to set aside the JV interests and sell the rest of its memory unit with a lowered price.
Key quote: “Toshiba implies that our arbitration only seeks to prevent the transfer of its equity, in which case they still intend to close even if Toshiba loses. Toshiba ignores that the arbitration seeks to prohibit the transfer of any JV interests without SanDisk’s consent. Because Toshiba transferred other JV interests, such as its managerial and control rights in the JVs, Toshiba cannot close its transaction if SanDisk prevails.”
Western Digital shares are up 2.29%.