TOKYO (Reuters) - A busy day for Toshiba's chief executive officer as new twists emerge in the saga of revised bids and changing alliances among suitors for the firm's chip business.
Western Digital Corp has apparently offered to drop out of the bidding process to address antitrust concerns, sending shares up nearly 5 per cent.
Toshiba's board met on Wednesday (Sept 6) to review the revised bid, but apparently failed again to reach an agreement.
Western Digital, the Nand memory chip maker, is already a joint venture partner with Toshiba and is seeking to strengthen that instead.
Toshiba needs to sell its chip unit to plug a giant hole in its finances caused by the failure of its US nuclear business.
With Western Digital out of the running it can pursue its favoured buyers.
And time is not on their side.
Failure to clinch a sale in the next few weeks could leave Toshiba unable to clear regulatory approvals by the end of the financial year in March. That would likely lead to Toshiba reporting negative equity for two years in a row, and increases its chances of its shares being delisted.