Toshiba shares rise as Broadcom emerges as favourite for chip unit

 
Jasper Jolly
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Toshiba's bosses have been forced into a sale of its prized chip unit (Source: Getty)

Shares in Toshiba rose in Asian trading after a Japanese newspaper reported US chipmaker Broadcom is first in line to buy its chip unit.

Tokyo-based business newspaper Asahi said Broadcom will be given exclusive rights to bid for the business, Reuters reported.

Toshiba shares closed up 2.82 per cent in Tokyo, outperforming the benchmark Nikkei 225 index which slumped by more than one per cent.

Read more: Toshiba presses on with shake-up and splits off four business units

The chip unit is one of the Japanese conglomerate’s most prized companies, with bidders from around the world putting themselves in the running.

Yesterday the Nikkei newspaper reported that Apple and Amazon could join a bid by Foxconn for the business.

Toshiba has been forced to sell its chip unit after massive losses in its US nuclear arm, Westinghouse, forced the subsidiary to file for bankruptcy protection, prompting large writedowns.

Read more: Toshiba files earnings... but fails to get auditor sign-off

That also led to the Toshiba missing two deadlines for filing its quarterly results, sending shares plummeting. The sale of the chip unit, the second largest in the world, would go some way to plugging the gap, with reports the sale could bring in as much as 2 trillion yen ($14bn).

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