Three groups vying for prized Toshiba chip unit

tokyo — Toshiba said on Thursday that three groups are vying for its memory chip business, as reports said Apple has jumped into the race with a consortium offering to pay about $20 billion for the unit.

The loss-hit conglomerate said bidders include a group led by US investment fund Bain Capital and Japanese state-backed investors and another that includes Taiwan’s Hon Hai Precision, better known as Foxconn.

A third consortium includes Western Digital, Toshiba’s USbased chip factory partner, which has tried to block any sale to a third-party in court.

Selling the profitable chip division is seen as key to cashstrapped Toshiba’s survival as one of Japan’s best-known firms struggles to plug multi-billion-dollar losses at its US nuclear power division, Westinghouse Electric.

Toshiba did not mention Apple, which has joined the Bainled consortium, according to reports in Japan’s Nikkei business daily and top-selling Yomiuri newspaper.

Toshiba poured cold water on reports that it would make a final decision Thursday, saying it had been unable to reach a “mutually satisfactory definitive agreement with one of the consortia”. It did not elaborate.

“The negotiation with each consortium has not reached the point which will allow Toshiba’s board of directors... [to] make a decision regarding the sale” of the chip business, it added in a statement. Talks would continue with possible bidders with an eye on a reaching a deal “at the earliest possible date”, it added. —