Broadcom and a group led by KKR are emerging as the two leading bidders for Toshiba¡¯s semiconductor unit as of Friday¡¯s deadline for second-round offers, according to people familiar with the matter.
Broadcom, based in San Jose, California, is offering about ?2.2 trillion ($20 billion) and would face simpler regulatory reviews than some rivals, said one of the people, asking not to be identified because the matter is private. The competing group, which includes state-backed Innovation Network of Japan and Development Bank of Japan, plans to offer about ?1.8 trillion and would benefit from support from the country¡¯s government, the people said.
Western Digital has been in talks to join the Japan group, but the parties haven¡¯t been able to agree on how to divvy up ownership. The company has been offered a stake of less than 20 percent, but it wants a controlling share, they said. Apple, which uses Toshiba memory chips in its products, is still considering whether to contribute capital to one or more bidders, they said.
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