Western Digital Moves to Block Toshiba Deal in Arbitration

By Ian King, Pavel Alpeyev, and Takako Taniguchi, Bloomberg News

Western Digital Corp. is taking legal action to try to guarantee a say in who gets to buy the chip unit of Toshiba Corp., its partner in a manufacturing joint venture.

The U.S. company invoked an arbitration clause in their business agreement, which could postpone a sale Toshiba needs to complete quickly. In preparation for the divestment, the Japanese technology company transferred ownership of the unit to a separate legal entity but didn’t get permission before doing so, according to Western Digital. The two should enter binding arbitration to resolve ...