The Bain Capital-led consortium that's buying Toshiba Corp.'s chip unit warned Western Digital Corp. to give up attempts to overturn the deal and settle its legal claims if it wants the relationship to continue.
The Bain group agreed to pay about $18 billion for the business, but Western Digital is seeking to block the sale in U.S. courts. The San Jose, California-based company contends that as Toshiba's joint venture partner it has contractual rights to approve any transaction for the business.
In his first public interview about the dispute, David Gross-Loh, the Bain managing director behind the deal, forcefully disputed those claims. He said Western Digital's legal challenge is based on a misrepresentation of its rights and that the deal is structured so there is no threat to its business. He warned however that Western Digital's access to flash memory products is at risk because of its aggressive legal tactics.