Toshiba, Western Digital to settle spat: sources

Tokyo

TOSHIBA Corp and Western Digital Corp have agreed in principle to settle their legal dispute over the US$18 billion sale of Toshiba's flash-memory business with a formal announcement expected within the next 24 hours, according to people familiar with the matter.

The US company will drop arbitration claims in the US that were aimed at stopping Toshiba from selling the chip business to a consortium led by Bain Capital, while the Japanese company will end its legal claims against Western Digital, said the people, asking not to be identified because the matter is private.