Toshiba to step up chip talks with Bain, Western Digital still in running: Nikkei

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TOKYO (Reuters) – Toshiba Corp (6502.T) has signed a memorandum to step up talks to sell its memory chip business to a group led by private equity firm Bain Capital and chipmaker SK Hynix Inc (000660.KS), the Nikkei newspaper said on Wednesday.

But the struggling Japanese conglomerate also plans to continue talks with Western Digital Corp (WDC.O) which is leading a rival group bidding for the $18 billion semiconductor unit, the report said.

Toshiba said it had no comment.

The report comes after the Toshiba’s board met earlier in the day. Sources told Reuters on Tuesday that Toshiba now favored the Bain group after failing to bridge key gaps in talks with business partner and rival bidder Western Digital.