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Toshiba shares surge after Greenlight stake, U.S. court hearing


Reuters

UPDATE 1-Toshiba shares surge after Greenlight stake, U.S. court hearing


* Shares jump 6.6 pct
    * Toshiba could be worth Y400 per share in future
-Greenlight
    * Western Digital did not gain immediate injunction vs
Toshiba

 (Recasts with Greenlight Capital stake)
    TOKYO, July 18 (Reuters) - Toshiba Corp <6502.T> shares
jumped on Tuesday after a U.S. hedge fund said it had added a
stake and after Western Digital Corp <WDC.O> did not gain an
immediate injunction to block the $18 billion sale of the
Japanese conglomerate's chip unit.
    Toshiba may be worth as much as 400 yen per share once it
resolves a legal dispute with Western Digital over the sale of
its chip business, the U.S. hedge fund, Greenlight Capital said
on Friday. [nL1N1K6016]
    Toshiba's shares climbed 6.6 percent in Tuesday morning
trade to trade at 246.8 yen. The Tokyo market was closed on
Monday for a national holiday.
    Western Digital, which is Toshiba's memory chip joint
venture partner, sued Toshiba in a U.S. court in mid-June,
arguing that Toshiba needs its consent to sell the business.
[nL1N1K51SX]
    At the hearing on Friday, Judge Harold Kahn postponed a
decision on whether to grant an injunction and proposed
requiring Toshiba to give Western Digital two weeks notice
before closing the sale.
    Toshiba is scrambling to complete the sale to help cover
billions in losses at its now-bankrupt Westinghouse's nuclear
unit. [nL1N1K6016]


 (Reporting by Taiga Uranaka; Editing by Chang-Ran Kim and
Edwina Gibbs)
 ((taiga.uranaka@thomsonreuters.com; +81-3-6441-1813; Reuters
Messaging:  taiga.uranaka.reuters.com@reuters.net))

Keywords: TOSHIBA ACCOUNTING/ (UPDATE 1)



This article appears in: Stocks , Technology


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