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Western Digital seeks court injunction to block sale of Toshiba chip unit

Staff Writer |
Western Digital has sought a court injunction to prevent Toshiba from selling its chip business without the U.S. firm's consent.

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This is a move that threatens to throw the fiercely contested auction into disarray.

The escalation in the spat between Western Digital, which jointly operates Toshiba's main chip plant, and its business partner follows tense last-minute jockeying by suitors for the world's second-biggest producer of NAND semiconductors.

According to a person familiar with the matter, the California-based firm has been left out of a new Japan government-led group being formed to bid for the unit.

Toshiba's "attempts to circumvent our contractual rights have left us with no choice but to take this action," Western Digital's Chief Executive Steve Milligan said in a statement.

"Left unchecked, Toshiba would pursue a course that clearly violates these rights," he added.

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