From PC World: Western Digital is seeking arbitration, demanding that its consent has to be taken before Toshiba can go ahead with plans to sell a stake in its memory business to raise funds.
The storage technology company acquired SanDisk last year and has been rumored to be a bidder for a stake in the Toshiba memory business, which has reportedly attracted a large number of other bidders including Apple and Foxconn Technology. SanDisk has been a long-term partner of Toshiba, with the two companies collaborating in the fabrication of nonvolatile memories, but is not seen as a front-runner in the auction.
On Sunday, Western Digital said that several of its SanDisk subsidiaries have filed for arbitration with the ICC International Court of Arbitration in connection with three NAND flash-memory joint ventures it operates with Toshiba.
“Toshiba’s attempt to spin out its joint venture interests into an affiliate and then sell that affiliate is explicitly prohibited without SanDisk’s consent,” said Western Digital’s CEO Steve Milligan in a statement, citing joint venture agreements SanDisk has with Toshiba.
The arbitration, which could be held in San Francisco in accordance with the agreements, will likely delay Toshiba’s plans to sell a majority part of its stake in its memory business.
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