2017.06.0602:31:00UTC+00Toshiba Shares Higher on Report Broadcom Named as Chip Unit Buyer

Toshiba was one of the best performers among Japan's largest companies after reports that Broadcom is close to being given rights for the conglomerate's prized flash memory unit. Shares in Toshiba Corp climbed as much as four percent in early trading on Tuesday.

Asahi newspaper reported Toshiba is weighing on providing U.S. chipmaker Broadcom Ltd the exclusive rights to negotiate to buy the prized chip unit. Broadcom has partnered with U.S. buyout company Silver Lake in its bid for the chip business, according to a previous report from Reuters. Toshiba this month has started final negotiations with Broadcom, Japan's Asahi newspaper reported.

A spokesperson from Toshiba has refused to comment on such reports.

Competition for the memory business, which is seen to fetch at least ¥‎2 trillion ($20 billion), remains fierce. Foxconn has even indicated that it willing to spend ¥‎3 trillion for the business. Foxconn founder Terry Gou said he has acquired financial backing of Apple and Amazon in its bid for the business as it aims to counter Japanese government opposition to the deal.