Hon Hai seeks Softbank help in Toshiba chips bid - report

Hon Hai Precision Industry has asked SoftBank for cooperation in its bid to acquire Toshiba's chip unit, sources close to the matter told Kyodo News. Hon Hai, which bought Japanese display maker Sharp last year, is also calling on other Japanese companies to join a consortium, in an effort to gain approval from the Japanese government. This comes at a time when the Japanese government is especially worried about a sale to a Chinese or Taiwanese company and could step in to block such a deal. 

According to the sources, Hon Hai chief Terry Gou has personally asked his long-time friend SoftBank Chairman and CEO Masayoshi Son for his cooperation and is expected to contact Toshiba's main creditor banks to seek their support for the acquisition plan. Hon Hai is also considering seeking Apple's investment in the Toshiba chip unit, the sources said. 

Hon Hai, owner of Foxconn Technology, is believed to be the highest bidder for Toshiba Memory so far, offering nearly JPY 3 trillion in the first round of bidding, other sources familiar with the matter have said. Other sources with knowledge of the bidding said joint-venture contract between Toshiba and US semiconductor maker SanDisk means the Japanese company cannot put its chip unit up for sale without approval from the SanDisk. Western Digital, a bidder for Toshiba Memory and the owner of SanDisk, is demanding exclusive negotiations as a result.