JA­PAN URGES FIRMS TO CO­OP­ER­ATE

But min­is­ter in­sists no govern­ment in­ter­ven­tion in mat­ter

New Straits Times - - Business World -

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

AP PIC

West­ern Dig­i­tal Corp is not among the fron­trun­ners for Toshiba’s NAND chip pro­duce af­ter sub­mit­ting a much lower of­fer than other suit­ors, says a source.

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