Western Digital Corp. (WDC) has resubmitted a bid for Toshiba Corp.'s (TOSYY) flashing memory unit, the company said Tuesday, as the battle between the two companies rages on for a division that could be worth as much as $20 billion.
"On June 26, Western Digital resubmitted a bid with KKR where Western Digital will provide debt financing to facilitate a sale by Toshiba Corporation of its interests in the NAND Flash Memory joint ventures," Western Digital said in a brief statement. "Western Digital continues to believe it is the best partner to advance Toshiba's legacy of technology innovation in Japan."
Western Digital shares fell 2.06% to $90.75 in after hours trading Monday even as the group said profit for its fiscal fourth quarter will hit $2.85 per share, well ahead of the street consensus of $2.65. Toshiba shares closed 1.74% down in Tokyo at ¥293.
Western Digital threw further doubt on the sale of Toshiba's much-needed sale of its chip unit Monday when it said it objected to any deal that involved rival chipmaker SK Hynix Inc. of South Korea.
Western Digital's June 25 letter said SK Hynix's participation in the consortium purchasing Toshiba's interests in their joint ventures "increases the likelihood of technology leakage and harm to the JVs going forward."
Toshiba last week chose a group led by Bain Capital Private Equity LP, but also supported by government-backed investment funds that has offered ¥2 trillion ($18 billion) for the world's second-largest producer of NAND flash memory chips.
