Western Digital may join Japan–KKR group for Toshiba chip unit bid

The concession by Western Digital could be a turning point in the hotly contested auction for unit.

TOKYO: Western Digital Corp may join a consortium of Japanese government money and KKR & Co LP to bid for Toshiba Corp's chip unit, backing away from an earlier demand for an immediate majority stake, two sources familiar with the matter said.

The consortium is expected to be the favoured bidder for the world's second biggest producer of NAND memory chips, as the presence of state-backed fund, Innovation Network Corp of Japan (INCJ), and the Development Bank of Japan (DBJ) will be taken as as the government's stamp of approval.