Toshiba prefers US-Japan bidder for memory chip biz sale
The troubled Japanese electronics giant has had deep recent losses and has been selling pieces of its operations to ensure its survival.
Tokyo-based Toshiba said Wednesday the board of directors selected the consortium of Innovation Network Corp. of Japan, Bain Capital Private Equity and the Development Bank of Japan as the preferred bidder in the sale of Toshiba Memory Corp.
Western Digital of the U.S., which has acquired some SanDisk chip operations, including a joint venture with Toshiba in Japan, reiterated its opposition to such a move.
The Innovation Network Corp. of Japan is made up of 26 big-name Japanese corporate investors, including Sony Corp., Canon Inc., Toyota Motor Corp. and Sumitomo Mitsui Banking Corp. Bain Capital Private Equity, based in Boston, is one of the world's leading investment firms.
Without a complete overhaul of its organization, Toshiba will have a very difficult road to recovery of its reputation and trust, essential ingredients to its existence, said Shuri Fukunaga, chief executive of Burson-Marsteller Japan, a communications consultancy firm that helps companies in crises.