More disagreements with Western Digital.
Toshiba may not seal a $17.5 billion deal to sell its memory chip unit by a self-imposed Aug. 31 deadline due to disagreements over details of an offer by the bidders, people familiar with the matter said late on Tuesday.
Talks with a consortium led by Western Digital wdc were in final stages, with the head of the U.S. firm in Japan to hammer out details, the sources said, requesting anonymity because they were not authorized to speak with media.
A Toshiba spokesman said the company could not comment on details of the talks. A Western Digital representative declined to comment.
Toshiba wants to close the sale by the end of the fiscal year in March to ensure it does not report negative net worth, or liabilities exceeding assets, for a second year running. This could result in a delisting from the Tokyo Stock Exchange.
Given regulatory approvals could take six months, the company has been hoping to reach a deal by the end of August to ensure it can close the sale in time.
In addition to Western Digital, the consortium includes U.S. private equity firm KKR & Co and the state-backed Innovation Network of Japan and Development Bank of Japan. Sources have said the group was offering around 1.9 trillion yen.