Toshiba Corp.'s talks to sell its chip business to a consortium led by Bain Capital have hit an impasse over the timing of payments for business and governance issues, according to people familiar with the matter, casting doubt on the company's ability to complete a deal quickly.
The Bain group wants to make cash payments after Toshiba resolves its legal dispute with partner Western Digital Corp., while Toshiba wants the money earlier, said the people, asking not to be named because the matter is private.
Last week, without explaining the reasons, Toshiba President Satoshi Tsunakawa said that the company would hold talks with other possible purchasers because it hadn't been able to reach final terms with the Bain group — which had been designated the preferred bidder. After a multibillion writedown of its U.S. nuclear business, Toshiba needs to complete the chip unit sale by March or face delisting from the Tokyo Stock Exchange.