Japan: Korea-US-Japan alliance emerging as frontrunner for Toshiba bid

Bain Capital has managed to cobble together an alliance that offers more than 2 trillion yen ($18.3 billion) for Toshiba’s semiconductor memory unit, a proposal that approaches a competing bid by U.S. semiconductor heavyweight Broadcom.

The US investment fund and its partners, including the private-public Innovation Network Corp. of Japan and the Development Bank of Japan, are scheduled to make an offer ahead of a Thursday meeting, where Toshiba’s management will consider bids for Toshiba Memory.

The new alliance has the double advantage of excluding Western Digital and better fitting Toshiba’s price demands. But Kohlberg Kravis Roberts and Western Digital have not yet given up: the chipmaker is considering raising its contribution to raise its communal bid above 2 trillion yen.

Western Digital could push back if SK Hynix, a competitor, is significantly involved in the new bid. Clearing antitrust screening could also pose hurdles, depending on exactly what role the South Korean chip manufacturer plays. For now, the company looks to lend support in the form of loans.

Full Content: Nikkei

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