Western Digital Has Sought A Court Injunction To Stop Toshiba Selling Its Chip Business

Western Digital Corp. (WDC) - Get Report  has sought a court injunction in California to prevent Toshiba Corp. (TOSYY)  from selling its chip business, a move that could throw doubt over the much-needed sale that could be worth more than $20 billion.

Western Digital said several of its SanDisk subsidiaries were seeking preliminary injunctive relief in the Superior Court of California for the County of San Francisco to prevent Toshiba from transferring its three NAND flash-memory joint ventures operated with Western Digital until the result of the arbitration is known.

The move puts into doubt Western Digital's place in the bidding process for the unit, which could fetch Toshiba up to $20 billion. Other bidders include Foxconn, which has assembled a consortium that includes Apple Inc. (AAPL) - Get Report , computing giant Dell Inc. and Kingston Technology Co.

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This article was written by a staff member of TheStreet.