18 bln sale of Toshiba chip signed

But in an inauspicious sign, a Tokyo news conference on the deal was cancelled, with Bain saying the consortium could not form a consensus on whether to brief media – underscoring fears that the 8-member group contained too many competing interests for it to work well.

The sale of the unit – the world’s second biggest producer of NAND chips – was agreed last week after a tortuous auction process but the signing was delayed because consortium member Apple Inc demanded new terms on chip supply, sources familiar with the matter have said.

“This consortium has so many members that it is going to be hard to come to consensus and agree on who’s going to take the initiative,” said Hideki Yasuda at Ace Research Institute, but he added that if the sale was successfully completed it would reduce a lot of risks for Toshiba.

Although the news conference was cancelled just minutes before it was due to begin, the head of Bain Capital in Japan, Yuji Sugimoto, said the disagreements over the briefing had no bearing on the contract. He did not disclose which members had objected to the news conference.

The deal – which must also overcome legal challenges – will see Toshiba reinvest in the unit and together with Hoya Corp, a maker of parts for chip devices, Japanese firms will hold more than 50 percent of the business – a keen wish of the Japanese government.

A Japanese state-backed fund and bank have also expressed their interest in investing in the future subject to certain conditions, Toshiba said in a statement.

———————————————————————————————–

Watch your favorite programs, documentaries, informative packages and latest NEWS(English and Urdu).

Watch Humsub tv Live Streaming here: Humsub.tv

Read Latest Articles and News here: Pakistan News

———————————————————————————————–