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Toshiba might delay flash sale

by on16 February 2017


Bidders having various thoughts


Toshiba may delay the sale of its flash memory chip unit after the conglomerate said it would consider selling most, even all, of the marquee business, a person with direct knowledge of the matter said.

Tosh needs to flog off its family silver to pay for a huge cock up of investing in a US nuclear company. The chip unit is doing well and Tosh thought of selling off 20 percent of it while retaining a share. But now it seems to be thinking of offloading the lot .

Changing the rules of the chip auction, which sources have said has generated bids of $1.8-$3.5 billion, could push the sale beyond Toshiba's planned deadline of the March 31 end of the business year.

Loosening the deadline would ease concerns about trying to hurry any antitrust reviews, increasing the number of potential buyers and potentially improving the offers, he said.

Some bidders apparently want management rights or have other responses to Toshiba throwing open the bidding to include a majority stake, he said.

Oddly though analysts are not happy with this change of plan which they think means that Tosh’s future is looking even bleaker.

Last modified on 16 February 2017
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