logo
Share SHARE
FONT-SIZE Plus   Neg

Nikkei: Toshiba To Join Bidding For Elpida

Japanese electronics giant Toshiba Corp. (TOSBF.PK) has decided to join the bidding for bankrupt chipmaker Elpida Memory Inc. (ELPDF.PK), the Nikkei business daily reported Thursday.

The move sets Toshiba in a bidding war against U.S. chipmaker Micron Technology Inc. (MU: Quote), which is seen as the front-runner to acquire Elpida.

Elpida was formed through the merger of NEC Corp. and Hitachi Ltd.'s memory businesses in 1991. The only remaining DRAM vendor in Japan, Elpida filed for bankruptcy last month after failing to secure investments, or a second round of government funding.

Elpida's results were hurt by falling DRAM prices and a stronger yen. The company filed for bankruptcy protection at the Tokyo District Court in February, saying its debts amounted to about 448 billion yen, or $5.53 billion. The company, whose customers include Apple Inc. (AAPL), was delisted from the Tokyo Stock Exchange on March 28.

However, Elpida is now said to be soliciting bids from potential investors to pull itself out of bankruptcy.

Toshiba, the world's second-largest maker of flash memory, reportedly believes that the addition of Elpida's cell-phone-use dynamic random access memory or DRAMs to its own offerings is crucial to surviving in the chip industry.

Although Toshiba and Boise, Idaho-based Micron Technology are likely to become the leading contenders for Elpida, other companies like Intel Corp. (INTC) may reportedly join the bidding race later.

The Nikkei reported that following two rounds of bidding by the end of April, a single sponsor for Elpida will be selected in early May. That company will acquire Elpida if a deal is reached.

Toshiba could reportedly seek financial assistance from the government-backed Enterprise Turnaround Initiative Corp of Japan.

The Japanese government had reportedly urged Toshiba to invest in Elpida prior to that company's bankruptcy filing, but Toshiba declined. Toshiba had quit fabricating DRAMs in 2002, hurt by huge losses.

TOSBF.PK closed Thursday's trading at $4.44, down $0.06 or 1.29 percent on a volume of 11,066 shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
American Airlines Group said pilots at its subsidiaries American Airlines and US Airways, represented by Allied Pilots Association, have approved a new five-year contract which provides immediate pay raises of 23 percent and subsequent annual raises of three percent for the next five years. LEGO Group, TT Games and Warner Bros. Interactive Entertainment have announced their 2015 slate of video games, including LEGO Jurassic World, LEGO Marvel's Avengers, and as well as new hand-held and mobile titles. Social-networking giant Facebook, Inc. is said to be testing their new 'Place Tips' feature for iOS users that will rival a similar service being provided by Yelp or Foursquare. The feature will provide the user relevant content about their location as long as they are there through pop ups on their news feed page of Facebook.
comments powered by Disqus
Follow RTT