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Japan-U.S. consortium to bid for Toshiba chip unit

The Japanese state-backed corporate turnaround fund and U.S.
investment fund Kohlberg Kravis Roberts may form a consortium with
several Japanese firms to bid for Toshiba Corp.'s chip subsidiary,
sources familiar with the matter said Wednesday.

A consortium of the Innovation Network Corp. of Japan,
state-owned Development Bank of Japan and KKR plans to offer 1.8
trillion yen ($16 billion) for Toshiba Memory Corp. in the second
round of bidding next month, and hopes to raise the amount through
the participation of Japanese firms, the sources said without naming
any firms showing interest.

Taiwan's Hon Hai Precision Industry Co., which last year bought
Japanese display maker Sharp Corp., submitted the highest bid of
nearly 3 trillion yen for the Toshiba unit in the first round,
according to other sources.

Toshiba needs to raise money by selling the chip business to
deal with a severe financial crisis caused by losses at its U.S.
nuclear unit Westinghouse Electric Co., but the Japanese government
is concerned about Toshiba's technology being lost to overseas buyers.
(April 27)