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Wednesday 10 May 2017 BUSINESS
                                     A24

                 Toshiba wrangles with Western Digital over chips unit sale



                                                                                                   according  to  letters  ob-  reportedly  interested  in
                                                                                                   tained Tuesday by The As-    acquiring  Toshiba’s  prized
                                                                                                   sociated  Press.  The  letters  chip-making business.
                                                                                                   from  the  company’s  law-    Another is Hon Hai of Tai-
                                                                                                   yers,                        wan,  also  known  as  Fox-
                                                                                                   dated  May  3,  accused  conn,  a  major  supplier  to
                                                                                                   Western Digital of “improp-  Apple, which has acquired
                                                                                                   er” interference.            Japanese electronics com-
                                                                                                   Western    Digital   bought  pany  Sharp  Corp.  South
                                                                                                   SanDisk, Toshiba’s longtime  Korea’s SK  Hynix  is  also  re-
                                                                                                   partner  in  making  flash  portedly a bidder.
                                                                                                   memory chips, last year. It  A  Japanese  consortium
                                                                                                   has argued the sale might  including      government-
                                                                                                   violate  terms  of  the  joint  affiliates  like  the  Develop-
                                                                                                   venture  with  Toshiba,  ac-  ment  Bank  of  Japan  and
                                                                                                   cording to the letters.      the  public-private  Innova-
                                                                                                   Such sales can be sensitive  tion  Network  Corp.  of  Ja-
                                                                                                   because  they  involve  the  pan are said to be prepar-
                                                                                                   transfer of technology.      ing  a  bid  with  U.S.  private
                                                                                                   Several companies, includ-   equity  firm  Kohlberg  Kravis
                                                                                                   ing  Western  Digital,  are  Roberts.q
                                                                                                   US Appeals court holds


                                                                                                   crisis bailout of AIG lawful
            Toshiba Corp.’s President Satoshi Tsunakawa bows during a press conference at the company’s
            headquarters in Tokyo. Money-losing Japanese electronics company Toshiba is sparring with its
            U.S. joint venture partner Western Digital over the planned sale of Toshiba’s computer-chip busi-  WASHINGTON  (AP)  —  A  government.
            ness. Toshiba warned Western Digital to stop interfering, according to letters seen Tuesday, May 9,   federal  appeals  court  has  The previous decision by a
            by The Associated Press. The letters from the company’s lawyers, dated May 3, accused Western   upheld  as  lawful  the  gov-  judge  in  the  U.S.  Court  of
            Digital of “improper” interference.                                                    ernment’s bailout of Ameri-  Federal  Claims  validated
                                                                     (AP Photo/Shizuo Kambayashi)  can International Group in  Greenberg’s  allegations  in
                                                                                                   the  heat  of  the  financial  principle, though the judge
            By YURI KAGEYAMA             ture partner Western Digital  sale to shore up its financ-  crisis. It overturned a lower-  rejected  Greenberg’s  de-
            AP Business Writer           over  the  planned  sale  of  es after it suffered massive   court decision favoring the  mand for $40 billion in dam-
            TOKYO  (AP)  —  Money-los-   Toshiba’s   computer-chip  losses  in  its  nuclear  power   insurance  giant’s  former  ages from the government
            ing  Japanese  electronics  business.                     division.                    CEO.                         for  himself  and  other  AIG
            company  Toshiba  is  spar-  Tokyo-based Toshiba Corp.  Toshiba  warned  Western       The  ruling  Tuesday  by  the  shareholders.
            ring  with  its  U.S.  joint  ven-  needs  cash  from  such  a  Digital  to  stop  interfering,   U.S.  Court  of  Appeals  for  Writing  the  new  opinion
                                                                                                   the  Federal  Circuit  said  a  for  a  three-judge  panel  of
                                                                                                   company controlled by ex-    the  appeals  court,  Chief
                                                                                                   AIG  chief  Maurice  Green-  Judge  Sharon  Prost  said
                                                                                                   berg  didn’t  have  a  legal  any claims against the gov-
                                                                                                   right  to  pursue  its  claim  ernment  rightfully  belong
                                                                                                   against  the  government.  to  AIG,  not  Greenberg’s
                                                                                                   Greenberg  had  alleged  company,  Starr  Interna-
                                                                                                   that  the  $85  billion  bailout  tional.  AIG  “has  exercised
                                                                                                   of the teetering AIG in Sep-  its  business  judgment  and
                                                                                                   tember  2008  violated  the  declined  to  prosecute  this
                                                                                                   Constitution’s Fifth Amend-  lawsuit,”  Prost  wrote.  “The
                                                                                                   ment  by  taking  control  of  alleged injuries to Starr are
                                                                                                   the company without “just  merely incidental to injuries
                                                                                                   compensation.”               to  AIG,  and  any  remedy
                                                                                                   The  unusual  case  raised  would go to AIG, not Starr.”
                                                                                                   the  issue  of  limits  on  the  Starr  did  not  show  that  it,
                                                                                                   government’s power in re-    rather  than  AIG,  directly
                                                                                                   sponding  to  financial  ca-  suffered harm from the tax-
                                                                                                   tastrophe.  The  new  ruling  payer  bailout,  the  judges
                                                                                                   handed  a  victory  to  the  said.q
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