U.S. judge postpones decision in bid to block Toshiba memory unit sale
Toshiba is scrambling to sell its flash memory unit to cover losses from its nuclear reactor business.
In late June, Toshiba announced its preferred bidder was a group made up of Bain Capital, South Korean chip maker SK Hynix and Japanese-government backed banks that offered $18 billion.
Western Digital, which is also bidding, sued Toshiba in San Francisco County Superior Court in mid-June, saying it believed a joint venture with Toshiba means Toshiba needs its consent to sell the flash business.
Western Digital's joint venture with Toshiba helps finance equipment at Toshiba's plants in exchange for some of their output.
Separately from the California lawsuit, Western Digital is also contesting its consent rights in an international arbitration tribunal.
Western Digital filed its lawsuit in San Francisco to prevent Toshiba from closing the sale of its memory unit before arbitration has a chance to play out.
At the hearing, Judge Kahn proposed requiring Toshiba to give Western Digital two weeks notice if it believed it would close the sale before the arbitration finished. ■