>> Shares in trouble, Toshiba slipping in Tokyo Thursday, as the company races to seal an $18 billion deal to plug massive losses and avoid a de-listing on the stock exchange. On Wednesday, the company announced its preferred bidders for its successful chip business, a group including US investment giant Bain Capital and Japanese government investors.
A bigger offer was tabled by rival chipmaker Broadcom, but as Reuters Billy Mallard explains, Tokyo clearly had some sway in the decision.>> The government has been really thoroughly involved in this whole bidding process from the beginning and they've made it very clear that two things are of paramount importance to them.
One is keeping advanced technology in Japan and the other is preserving Japanese jobs. It's interesting that when Toshiba announced that they had picked this group as the preferred bidder, Toshiba itself stressed keeping the technology in Japan and preserving the jobs. Which if you think about it is a little bit unusual for the selling company to be concerned about the jobs of the company its getting rid of.
>> Toshiba can't afford to ignore the government either. It's going to need Tokyo's support to decommission power plants after its nuclear division went bankrupt, plunging the company into turmoil.>> It would be really difficult for any company, but especially a big involved company like Toshiba to say no to the government.
They have got lots of government contracts, they're going to probably need government help as they struggle to remain alive.>> Executives are scrambling to get a complex deal done by next Wednesday, when Toshiba holds its annual shareholders meeting, but time is not on their side, and success isn't guaranteed.
The company's chips business partner, Western Digital, has kicked off legal action to prevent the deal going through without its approval.