Daily Management Review

Toshiba awards Bain-led consortium the rights to purchase its NAND chip business


09/20/2017


Despite the appearance of finality to the matter, there still lurks an element of uncertainty given Western Digital Corp’s earlier position on the matter.



As per three sources with knowledge of the talks, Toshiba Corp has selected U.S. private equity firm Bain Capital to buy its NAND chip business.
Despite this decision, it is still unclear whether Toshiba’s joint venture partner Western Digital Corp, a rival suitor which has initiated legal action on the grounds that no deal is allowable without its consent, will allow this deal to go through.
According to sources, the Bain-led consortium has offered $22 billion for Toshiba’s NAND semiconductor business.
The consortium includes, Apple Inc, Dell Inc, Seagate Technology Plc, SK Hynix Inc and Kingston Technology.
As per Hideki Yasuda, an analyst at Ace Research Institute, the constituents of the consortium could spell trouble ahead.
“The large number of stakeholders could complicate decision-making and slow down key investment decisions,” said Yasuda while adding that the participation of Toshiba clients would also sap the ability of the chips business to negotiate competitively on pricing.
As per another source, the official announcement by Toshiba on the deal has got held up since it is still awaiting commitment letters from all members of Bain’s consortium.
While a representative from Bain was not immediately available for comment, Toshiba and SK Hynix declined to comment.
 
References:
http://uk.reuters.com







Science & Technology

Apple takes up to develop Apple Watch for health monitoring

Hyperloop is growing in Europe

Analysts: US gamers prefer mobile games

Google Assistant Winner Of Head-To-Head Test Of Digital Assistants, Beats Siri And Alexa

Animals Can Burn Muscle To Supplement Body Water Needs, Finds A Study

The future of private flights at Farnborough air show

Experts Want To Fix Problem Of AI Hurting People Of Color And The Poor

New Study Claims Astrobiologists Locating Possible Life On Moon In Its Life Time

Wreck Of Russian Ship Rumoured To Have 5,500 Boxes Of Gold Found Near South Korean Island

Gene Editing of Human Embryo Could Find ‘Moral’ Grounds: UK’s Ethics Council

World Politics

World & Politics

Venezuela comes up with a new monetary reform

Paris is losing its icon public bicycle sharing system

Heat wave in Europe creates problems for brewers

Is it legal to print a gun? US is discussing 3D printing of firearms

Southeast Asian Leaders To Seek Clarity Of US Policies For The Region Form Pompeo

The world economy is accumulating environmental debt

US To Invest $113 Million In Asia To Counter Chinese Influence

US Intelligence Detects New Activity At Its Missile ICBM Factory: Reports