Breaking News
FONT-SIZE Plus   Neg
Share SHARE

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.

Register
To receive FREE breaking news email alerts for Toshiba Corp. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Personal spending in the U.S. unexpectedly decreased in the month of September, according to a report released by the Commerce Department on Friday, with the drop in spending accompanied by weaker than expected personal income growth. Stocks are likely to jump sharply at the start of trading on Friday, extending the upward move seen over the course of the previous session. The major index futures are currently pointing to a substantially higher open for the markets, with the Dow futures up by 169 points. Eurozone inflation rose slightly in October but it remained consistently below 1 percent, signifying the risk of deflation in the currency bloc. At the same time, the unemployment rate held steady at an elevated level in September. Inflation rose marginally to 0.4 percent in October from 0.3 percent in September, flash data from Eurostat showed Friday.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.