JAPAN URGES FIRMS TO COOPERATE
But minister insists no government intervention in matter
TOKYO for the world’s second biggest NAND chip producer, but was not among the frontrunners after submitting a much lower offer than other suitors, said a source.
“It’s very important for Toshiba and Western Digital to cooperate,” said Trade Minister Hiroshige Seko at a regular briefing yesterday, although he added that the ministry did not intend to intervene in the dispute.
His comments come after media reports that one of the proposed deals under discussion among government circles is to have chip unit, which is valued by Toshiba at US$18 billion (RM77.58 billion), brought under control of the state-backed Innovation Corporation of Japan (INCJ) fund.
INCJ and United States private equity firm KKR & Co LP are widely expected to be the main players in a consortium that will take part in a second round of bidding.
However, some INCJ officials were cautious about making a large-scale deal, said sources. The fund has just one trillion yen (RM37.93 billion) in its war chest for acquisitions and investment.
The Financial Times reported yesterday that some senior members in Prime Minister Shinzo Abe’s administration had privately discussed offering up to US$8 billion in government loan guarantees to support a INCJKKR bid. Reuters