Toshiba shares down after Reuters reports it favors Bain group for chip sale

Reuters News
Posted: Sep 12, 2017 8:16 PM

TOKYO (Reuters) - Shares of Toshiba Corp <6502.T> fell more than 1 percent in early Wednesday trading after Reuters reported it now favors a group led by Bain Capital LP and SK Hynix Inc <000660.KS> to buy its prized semiconductor business.

In the latest twist in the $18 billion sale process, Toshiba now hopes to reach agreement with the Bain group by next week, two people briefed on the matter said.

The Japanese conglomerate, which needs to sell the chip business to plug a huge hole in its finances, had been trying to seal a deal with its business partner Western Digital Corp <WDC.O>, but failed to bridge key gaps, they said.

Toshiba shares were down 1.2 percent at 327.0 yen as of 2407 GMT.

(Reporting by Makiko Yamazaki; Editing by Stephen Coates)