TOKYO -- Toshiba has begun negotiations with business partner Western Digital in hopes of reaching an agreement this month to sell its flash memory arm and salvage a vital part of its turnaround plans, it was learned Tuesday.
A consortium including Western Digital, Kohlberg Kravis Roberts of the U.S., the public-private Innovation Network Corp. of Japan and the state-backed Development Bank of Japan has tendered a roughly 1.9 trillion yen ($17.3 billion) bid for Toshiba Memory. The American hard-drive manufacturer would contribute hundreds of billions of yen in funding without initially receiving voting rights. Its plan is to take a stake of less than 20% after the deal clears antitrust reviews.
