Japan gov’t-led bid for Toshiba chip unit to include SK Hynix

Japan gov’t-led bid for Toshiba chip unit to include SK Hynix

Japan gov\'t-led bid for Toshiba chip unit to include SK Hynix

A Japanese government-led consortium bidding for Toshiba Corp’s chip business will include South Korean chipmaker SK Hynix Inc, sources familiar with the matter said – a move likely to add firepower to the group’s bid in the hotly contested auction.

The sale has seen much tense last-minute jockeying by suitors, leaving the conglomerate little time to come to a decision by its shareholders meeting at the end of this month.

Toshiba is seeking a minimum of $18 billion for the world’s second-biggest producer of NAND chips and wants to get the deal done as quickly as possible to help it cover billions of dollars in cost overruns at now-bankrupt nuclear unit Westinghouse.

A state-backed fund, the Innovation Network Corp of Japan (INCJ), has been at the centre of trade ministry efforts to forge a successful bid that will keep the highly prized unit under domestic control. But the nature of its partnerships appears to be going through drastic changes compared to just last week.

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