Western Digital plans to present Toshiba with a revised offer for its memory chip unit next week in order to resolve an increasingly bitter conflict over the future of a business the two companies jointly own, according to a person familiar with the matter.
Steve Milligan, the U.S. company's chief executive officer, will travel to Tokyo next week to meet Toshiba President Satoshi Tsunakawa, the person said, asking not to be identified because the details are private. The new plan is designed to make it more palatable for Toshiba shareholders to accept an acquisition by Western Digital and its associates, according to the person, who would not specify the price to be offered or name partners.
The two companies have been increasingly at odds over Toshiba's plan sell its flash memory business in which Western Digital is a manufacturing partner. While Toshiba needs to raise cash to keep itself afloat following a disastrous investment in nuclear power, Western Digital has sought to block the sale on concerns the operations may fall into the hands of competitors. The U.S. company has not been able to match other bidders and has instead sought legal remedies to delay the sale.