SALE OF SEMICONDUCTOR BUSINESS
Why Toshiba is struggling to find a Japanese buyer for semiconductor business
New York/Tokyo — Toshiba Corporation and the Japanese government want to sell the company’s semiconductor business to a domestic buyer, but foreign bidders are proving more determined and aggressive as the auction heads towards a final decision in the coming weeks. Taiwan’s Hon Hai Precision Industry, South Korea’s SK Hynix and chip maker Broadcom had all submitted preliminary bids for the Toshiba business valued at ¥2-trillion ($18bn) or more, people familiar with the matter said. Hon Hai had indicated it may pay as much as ¥3-trillion, in part to force Japanese management into negotiations, said one of the people, asking not to be identified because the matter is private. Hynix was in talks with Japanese investors on a joint bid, in part to overcome political hurdles, the person said. Toshiba and government officials are planning to seek offers led by Japanese acquirers, though none has emerged yet, people familiar with the matter have said. The company could seek a bailout throug...
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