{"id":33729,"date":"2017-07-04T06:55:56","date_gmt":"2017-07-04T06:55:56","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=33729"},"modified":"2017-07-04T06:55:56","modified_gmt":"2017-07-04T06:55:56","slug":"toshiba-seeks-dismissal-of-western-digital-injunction-request-over-chip-unit","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/toshiba-seeks-dismissal-of-western-digital-injunction-request-over-chip-unit.html","title":{"rendered":"Toshiba seeks dismissal of Western Digital injunction request over chip unit"},"content":{"rendered":"

Toshiba seeks dismissal of Western Digital injunction request over chip unit<\/span><\/strong><\/span><\/h2>\n

Toshiba Corp has asked a U.S. court to dismiss a Western Digital Corp request for an injunction to prevent a sale of the Japanese firm’s chip business, saying the court has no jurisdiction and that an injunction would cause irreparable harm.<\/span><\/p>\n

Western Digital, which jointly runs Toshiba’s main semiconductor plant, has claimed that its partner has breached joint venture contracts as it pursues an $18 billion sale of the unit and is seeking an injunction to prevent any deal without its consent.[nL3N1JC082]<\/span><\/p>\n

In its filing with the Superior Court of California, Toshiba argued that their joint venture interests only cover a small portion of its flash memory semiconductor business and that the court has no jurisdiction as its primary place of business was Japan.<\/span><\/p>\n

Toshiba is scrambling to get a deal done as fast as possible as it needs funds to cover billions in cost overruns at now-bankrupt unit Westinghouse. It is currently negotiating with a preferred bidder consortium that includes Japan government investors and U.S. private equity firm Bain Capital.<\/span><\/p>\n

“Even if an agreement is reached with a bidder…if Toshiba is prevented from moving forward on implementing that transaction, the harm to an overall deal would be severe – and may well make the implementation of a transaction impossible,” said in its filing, which was made on Friday.<\/span><\/p>\n

Western Digital has tabled its own bid for the chip unit – the world’s No. 2 producer of NAND chips – but the offer has gained little traction with Toshiba, which says it raises anti-trust concerns. The Japanese firm is also reluctant to engage with Western Digital as its U.S. partner has said in the past it wants to take control of the unit.<\/span><\/p>\n

Western Digital argues that an injunction will ensure that an international arbitration court will be given an appropriate opportunity to resolve their dispute.<\/span><\/p>\n

The court hearing on the issue is scheduled for July 14 and Western Digital has said it believes a decision could come on the same day.<\/span><\/p>\n

Western Digital is expected to file a response to Toshiba’s opposition before the hearing.<\/span><\/p>\n

Source:-\u00a0http:\/\/www.reuters.com\/article\/us-toshiba-accounting-idUSKBN19P0AN<\/span><\/p>\n

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