Toshiba Warns Western Digital to Stop Interfering in Plans to Sell Its Memory Chip Business

Toshiba (TOSYY) has warned Western Digital (WDC) - Get Report not to interfere in the sale of its chip unit, after claims that the Japanese company had breached a joint venture contract.

In a letter to Western Digital Toshiba's lawyers have threatened litigation against the U.S. company for "intentional interference" in the sale of its chip unit, which could fetch up to $20 billion and is critical to the future of Toshiba, whose recent woes have put its ability to stay in business in doubt.

Western Digital, which is a partner in Toshiba's main semiconductor plant and also a bidder for the chip business, has claimed the Japanese firm is violating their contract by transferring their joint venture rights to a newly formed unit, which will eventually be sold off.

READ MORE: Toshiba Stock Rises As It Warns Western Digital on Chip Sale Interference

This article was written by a staff member of TheStreet.