Report: Apple Inc. (AAPL) Considering Investing “Several Billion Dollars” in Toshiba

Apple Inc. (NASDAQ:AAPL)  is reportedly mulling over investing in Toshiba Corp.’s semiconductor business, Reuters said April 14, citing Japanese public broadcaster NHK.

Apple Inc. (NASDAQ:AAPL) is said to be pondering on teaming up with its supplier Foxconn to unload “several billion dollars” to acquire more than 20% of Toshiba’s semiconductor business. Foxconn is considered a potential threat to the national security of Japan for any transfer of sensitive technology that may arise with a deal due to its ties with China.

The chip sale auction was participated in by Foxconn as well as Toshiba’s partner Western Digital Corp., which is also instigating that Toshiba’s move to sell the chip business was a violation of their JV. Western Digital indicated that they should have exclusive negotiating rights, the report said.

There is no clear proof that Apple participated in the said auction.

Apple Inc. shares fell 0.53% in below-average trading to $141.05 on April 14.

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What Does The Smart Money Sentiment Say?

The Smart Money was bearish on Apple Inc. (NASDAQ:AAPL) stocks, after we saw a noticeable decline in hedge funds who own shares quarter over quarter. By the end of the fourth quarter of 2016, only 113 hedge funds hold shares of the company valued at $16.54 billion, versus 145 funds who own shares valued at $16.22 billion in the third quarter of the same year.

While the Smart Money shied away from Apple, Warren Buffet of Berkshire Hathaway continues a bullish outlook with a 277% increase in activity in Q4. As of the fourth quarter of 2016, his shares now stand at over 57 million and valued at $6.64 billion.

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The Bottom Line

Apple Inc. (NASDAQ:AAPL) is in the spotlight as it becomes the subject of a potential deal to acquire the semiconductor business of Toshiba. For further reading, check out the 11 worst tech mergers and acquisitions ever.