Friday, 19 May 2017

Western Digital to force Toshiba into arbitration over semiconductor unit sale

Western Digital has demanded that its NAND flash semiconductor unit partner Toshiba go to arbitration in a bid to prevent it from selling its 50 per cent stake in the business to the highest bidder.  
The move comes after Toshiba sent formal legal warnings to Western Digital, urging it to back off, just weeks after Western Digital threatened to take action to block the sale by Toshiba.

Western Digital, in turn, claims that the legal transfer of Toshiba's interests in its joint-venture to a subsidiary, Toshiba Memory, as part of the sale process violates the "anti-transfer provisions of the joint venture agreements", as it was done without the consent of Western Digital-owned SanDisk.

The Japanese company put its prize asset on the block after its US nuclear power business, Westinghouse, was put into Chapter 11 bankruptcy protection following a series of disastrous business decisions.

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