Western Digital injunction into Toshiba in chip sale postponed, shares jump

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Western Digital injunction into Toshiba in chip sale postponed, shares jump

Toshiba shares rose more than 8 percent on Tuesday after a US judge postponed its decision in Western Digital's bid to temporarily block the Japanese company from selling its flash memory business in an US$18 billion deal.

Western Digital, which is also bidding for the prized unit, sued Toshiba in San Francisco County Superior Court in mid-June, saying it believed a joint venture with Toshiba means Toshiba needs its consent to sell the business.

At the hearing on Friday, Judge Harold Kahn proposed requiring Toshiba to give Western Digital two weeks notice before closing the sale.

The Tokyo market was closed on Monday for a national holiday. As of 0012 GMT, Toshiba shares were up 7.9 percent at 250 yen.

 

(Reporting by Taiga Uranaka; Editing by Chang-Ran Kim)

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