Page 24 - ARUBA TODAY

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