Western Digital Corp (NASDAQ: WDC) lost some of its stock spunk Wednesday afternoon, after expressing its opinion on the proposed Toshiba’s transfer of its interest in its NAND flash-memory joint ventures operated with Western Digital’s SanDisk subsidiaries.
The San Jose-based electronics company said that it is surprising that Toshiba continues to pursue transaction along with Bain-SK Hynix consortium, but without SanDisk's consent.
“We are disappointed,” WDC officials were quoted in a news released Wednesday, “that Toshiba would take this action despite Western Digital’s tireless efforts to reach a resolution that is in the best interests of all stakeholders.
“Throughout our ongoing dialogue with Toshiba, we have been flexible, constructive and have submitted numerous proposals to specifically address Toshiba’s stated concerns.
“Our goal has been — and remains — to reach a mutually beneficial outcome that satisfies the needs of Toshiba and its stakeholders, and most importantly, ensures the longevity and continued success of the JVs.
“We remain confident in our ability to protect our JV interests and consent rights.”
Western Digital calls itself an industry-leading provider of storage technologies and solutions that enable people to create, leverage, experience and preserve data.
On Tuesday, WDC announced it was expanding its WD Gold® hard drive lineup to include a 12TB capacity model, designed to address demanding Big Data workloads. The new high-capacity hard drives provide for increased storage density in a range of enterprise and cloud storage applications.
Its shares collapsed $3.36, or 3.8%, to $85.43, within an hour of Wednesday’s closing bell.