The Japanese conglomerate has been trying to sell the unit to cover losses from its bankrupt U.S. business Westinghouse. The company has struggled to close a 2 trillion yen ($18 billion) deal with the consortium, backed by the Japanese government, Bain Capital and South Korean chipmaker SK Hynix.
The deal hit a snag when Western Digital, which jointly runs Toshiba's main chip plant, said it also wanted to buy the business. It sought an injunction to prevent the sale to the consortium, arguing that any deal needed its approval.
Western Digital is also offering around 2 trillion yen and would ally with U.S. private equity firm KKR & Co (KKR) - Get Report as well as the two Japanese government funds that are part of the favored bidder group, the report said. Toshiba also started fielding offers from Apple (AAPL) - Get Report supplier Foxconn earlier this month.
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