Western Digital Corp. said Tuesday it will seek an interim injunction to prevent Toshiba Corp. from selling its chip unit to a Japan-U.S.-South Korea consortium.
The suit to be filed with the International Court of Arbitration is the latest salvo in the companies' bitter legal battle. If Western Digital's request is accepted, the sale could be suspended.
Toshiba is racing against the clock to sell Toshiba Memory Corp. to cover massive losses stemming from its now-bankrupt U.S. nuclear unit Westinghouse Electric Co. by the end of next March. If it fails to eliminate its negative net worth, the Japanese firm will be delisted from the Tokyo Stock Exchange.