Western Digital-Toshiba War Turns Nasty, Bain Files New Bid
Zacks Investment Research | Jun 15, 2017 09:19PM ET
The ongoing war over Toshiba Corp’s flash memory chip business recently intensified with Western Digital (NASDAQ:WDC) filing an injunction appeal to block the sale and a consortium led by private equity firm Bain Capital LP submitting a new bid.
Suitors Continue to Flock for the Chip-Unit
We note that Toshiba is the second largest NAND flash memory maker, a technology that is now preferred over legacy hard-drive storage systems due to speed and reliability. The company is in dire need to raise capital to remain as a listed entity.
Currently, the company has negative shareholder’s equity after it posted a massive loss of 950 billion yen (almost $8.6 billion) in the fiscal year ended March. Most of the loss can primarily be attributed to write-downs related to its now-bankrupt Westinghouse nuclear business.
The chip-unit, which Zacks Investment Research
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