That includes a ¥200B investment in infrastructure, is up from an initial bid of about ¥1.94T, and is reportedly in response to a revised bid from Western Digital (WDC +1.2%) that is likely higher than their own reported offer of ¥1.9T.
Sources tell Reuters that all three bidder groups, including Foxconn (OTC:FXCOF, OTCPK:HNHAF) have roped in Apple to boost the bids.
Toshiba's board meets on Wednesday to go over offers, Reuters says.
Toshiba (OTCPK:TOSYY) has selected a consortium consisting of the INCJ, Bain Capital and the Development Bank of Japan as a preferred bidder for its memory chip business, estimated to be worth around $20B.
Western Digital (NYSE:WDC) responded to the news, saying Toshiba continued to ignore both its subsidiary SanDisk's rights and the dual-track legal process currently underway.
Quoting Chairman Terry Gou, the Nikkei said that Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) will join Foxconn's (OTC:FXCOF) bid for Toshiba's (OTCPK:TOSYY) semiconductor business, which is valued at about $18B.
The two U.S. technology giants plan to "chip in funds", but it was not immediately clear if this means a direct investment in the chip unit or financing for the deal.
State-backed fund the Innovation Network Corp. of Japan will sell a stake in Renesas Electronics (RNECY -4.9%) worth about $2.7B in what observers see as a sign that it's readying an investment in the chip unit at Toshiba (TOSYY -0.3%).
That would likely be part of a consortium with another suitor that would have a key advantage over others -- including Foxconn (OTC:FXCOF, OTC:HNHAF), Broadcom (AVGO +2.5%) and Western Digital (WDC +0.7%) -- as it would keep important semiconductor technology inside Japan.
INCJ has been considering a partial exit of its Renesas stake for a couple of years, but funding would be timely as bidders compete over a unit that Toshiba values at ¥2T (about $18B).
INCJ has just ¥1T for acquisitions and investment, and so is cautious about making large-scale deals.
Potentially derailing a much-needed capital injection, Western Digital (NYSE:WDC) is seeking international arbitration to stop partner Toshiba (OTCPK:TOSYY) from selling its chips unit without consent.
A legal battle could delay or put an end to the auction that could fetch some $18B and has attracted suitors such as KKR, Foxconn (OTC:FXCOF) and Broadcom (NASDAQ:AVGO).
Toshiba (TOSYY -6%) has temporarily suspended meetings and decisions about the sale of its NAND memory chip business to address concerns raised by Western Digital (WDC -0.6%) about whether the auction process can proceed, Bloomberg reports.
Western Digital has suggested that splitting off the unit as Toshiba Memory before a sale violates a joint venture contract it has with Toshiba, and that bidding is running above fair and supportable value for the business. It wants exclusive talks over buying the unit, and RBC's Amit Daryanani believes WDC has an effective veto right.
Toshiba disagrees with WDC on that. After reports that Broadcom (AVGO +1.5%) had submitted a ¥2T bid, Foxconn (OTC:FXCOF) has reportedly come up with an offer to pay ¥3T (about $27B).
Western Digital says the auction process isn't in Toshiba shareholders' best interests and wants to enter exclusive talks in the deal, noting bidding is running hot and above fair value for the business.
Already considered among involved parties looking to acquire a stake in Toshiba's (TOSBF, TOSYY) memory business, Foxconn (OTC:FXCOF) chairman and CEO Terry Gou notes his company is highly confident an arrangement will develop, possibly inclusive of partners.
Toshiba is evaluating sale of the unit in whole or part in effort to offset a $6.3B write-down expected to be incurred by its nuclear power segment.
Toshiba (OTCPK:TOSYY) wants to raise at least ¥1T ($8.8B) from the sale of a majority stake in its flash memory chip business as a buffer against any fresh financial problems, Reuters reports.
The conglomerate is looking to restart the sale process as soon as possible and may sell to multiple buyers rather than one bidder, with interest already received from investment funds, chipmakers and client companies.
Toshiba (OTCPK:TOSYY) favors private equity bidders in the sale of a stake in its chip business, as suitors including rivals SK Hynix (OTC:HXSCF), Micron (NASDAQ:MU), Foxconn (OTC:FXCOF) and Western Digital (NYSE:WDC) vie with financial investors like Bain Capital.
Toshiba needs to raise funds by the end of March to offset an imminent multi-billion dollar nuclear unit writedown, meaning there may not be enough time to conclude a deal with another chipmaker.
M&A activity is kicking off the headlines this week with an array of deals expected to be announced shortly.
Among them: Mid-America Apartment (NYSE:MAA)- Post Properties (NYSE:PPS), Sharp (OTCPK:SHCAY)- Foxconn (OTC:FXCOF), Honeywell (NYSE:HON)- JDA Software, Xylem (NYSE:XYL)- Sensus USA and KKR- Entertainment One (OTC:ENTMF).
The technology sector is still leading the global M&A market in 2016, but the real estate segment is not far behind.
Will 2016 outpace 2015's record in terms of acquisitions and deal value?