|The high risk path Toshiba is taking can be seen as a face saving effort to justify somehow the mistake they made buying Westinghouse, a major producer of equipment and components for nuclear reactors, but a business that has been and continues to be in decline. To rescue their bad decision, they decided to give up their share of a joint venture that probably had higher profit margins than any other part of Toshiba's business.|
Nonetheless, WDC was not all that adept in convincing Toshiba of its right to approve a Toshiba decision to sell, especially when that decision could mean selling proprietary technology to a competitor. The way WDC has handled the issue most likely will lead to court action, more delay, and more costs for both sides, even though eventually WDC will succeed. A court decision that finally grants WDC the right to veto a sale to a competitor might be settled before the final decision in a deal where Toshiba gets a little more from WDC than its current approx. $18 billion offer, thus allowing Toshiba's board to save face by holding out for a higher price. But as I have noted, this will take time.
Some respondents on this board are so sure that WDC will win no matter what that they neglect the length of time it will take to resolve. They may have invested in short term call options or other vehicles and fear that the longer it takes to resolve, the more endangered their investment. Things don't always work out the way an enthusiast hopes. I'm a long term investor, with more than 60 years experience in stock market investing, and I can tell you that after all this time, I know a couple of things.