Shares in Toshiba rose by nearly 5% today as it appeared closer to finalising a $17bn deal to spin off its semiconductor business.
Toshiba´s board was reported to be mulling a revised proposal from California-based computing name Western Digital.
The Tokyo-listed behemoth is under pressure to agree the sale within the next few weeks as it struggles to plug a gaping hole in its finances attributed to writedowns on its US nuclear operations.
Western Digital has proposed to withdraw from a consortium bidding for the chip business, desisting from legal action and rehashing the terms of a joint venture.
The US group has been embroiled in a legal tussle with Toshiba over their chip joint venture and the latter´s spin-off plans.
Western is understood to have proposed to drop out of the bidding for Toshiba´s semiconductor business on condition of securing a better position for itself in the two companies´ chip joint venture.
While Toshiba is understood to be wary of Western gaining control over its $17bn semiconductor unit, there are also potential competition issues should the US group become the majority owner.
There are three separate bidding consortiums gunning for Toshiba´s semiconductor unit. One of the consortiums is currently led by Western Digital and US private equity firm KKR. Another is headed by US private equity company Bain and Apple, while the third is being led by Taiwan´s Foxconn.
Disagreement with Western saw Toshiba miss its deadline to close the sale of the semiconductor business last week.
Toshiba´s board is expected to vote on Western´s latest proposals next week.