Toshiba threat­ens to sue WD

New Straits Times - - Business -

TOKYO: Toshiba Corp has told part­ner Western Dig­i­tal Corp to stop in­ter­fer­ing in plans to sell its mem­ory chip busi­ness, warn­ing it may take le­gal ac­tion to prevent the Amer­i­can com­pany from de­rail­ing the sale.

Toshiba sent two let­ters to Western Dig­i­tal on May 3: the first from Toshiba’s lawyers as­serts the Ja­panese com­pany’s right to sell its part of the semi­con­duc­tor joint ven­ture, de­spite ob­jec­tions from Western Dig­i­tal.

The sec­ond, sent by Toshiba to Western Dig­i­tal’s chief le­gal of­fi­cer, says the com­pany failed to rat­ify a pro­posal to for­malise their re­la­tion­ship af­ter a merger, and that Toshiba would bar Western Dig­i­tal em­ploy­ees from its fa­cil­i­ties and net­works un­less it com­plies by May 15.

Western Dig­i­tal be­came Toshiba’s flash-mem­ory man­u­fac­tur­ing part­ner when it ac­quired San­Disk Corp for US$15.8 bil­lion (RM68.66 bil­lion) last year.

That unit may now pass into the hands of a new owner af­ter Toshiba de­cided to put it up for sale to shore up its balance sheet. Bloomberg


In a let­ter to Western Dig­i­tal, Toshiba Corp says the US firm has no right to halt the sale of its mem­ory chip busi­ness.

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