Japan’s embattled Toshiba Corp (6502.T) has chosen a group led by U.S. private equity firm Bain Capital to buy its prized memory chip unit, three people with knowledge of the talks said on Wednesday, a last-minute dramatic twist to a highly contentious auction.
But it’s unclear whether the decision by Toshiba’s board will mean the sale will now proceed smoothly, as rival suitor Western Digital Corp (WDC.O) has initiated legal action, arguing no deal can be done without its consent due to its position as Toshiba’s joint venture chip partner.
The Bain-led offer for the world’s No. 2 producer of NAND semiconductors is worth some $22 billion, sources have said.
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