Toshiba’s nightmare is far from over, as deal with Bain faces two new, major hurdles
New York/San Francisco/Tokyo — Toshiba’s struggle to sell its chip division took two new twists on Tuesday. Western Digital said it would seek an injunction to block the sale, and KKR was reported to have asked Apple — currently part of the Bain-led group picked by Toshiba last week — to switch sides. The latest legal action by Western Digital, the US firm that jointly invests in Toshiba’s main chip plant, comes in the wake of the Japanese conglomerate’s decision last week to sell the unit to a consortium led by Bain Capital and South Korean chipmaker SK Hynix. The $18bn agreement with the Bain group is, however, still unsigned, with Toshiba telling its main banks this week that Apple, a member of the consortium and an important client, had yet to agree to key terms. And, according to a person familiar with the discussions, KKR is trying to persuade Apple to switch sides and join the private equity firm. Switching to the KKR group from the Bain group would require Apple to become mo...
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