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Toshiba shares slip ahead of chip business sale approval

Workers prepare the new year's eve numerals above a Toshiba sign in Times Square in Manhattan, New York City, U.S., December 26, 2016. REUTERS/Andrew Kelly/File Photo

TOKYO (Reuters) - Shares of Toshiba Corp <6502.T> slipped in early trading on Wednesday as the company prepared to give the nod to spinning off its chip business.

Its shares slumped 2.2 percent to 254 yen, even as the Nikkei stock index (.N225) rose 1.7 percent.

Toshiba's board will meet on Friday to approve plans to make its chip business a separate company and hopes to raise more than 200 billion yen ($1.76 billion) by selling a 20 percent stake in it, a person with direct knowledge of the matter said.

The sale is part of its efforts to brace itself for an upcoming multi-billion dollar writedown on its U.S. nuclear business, a charge that other sources have said may exceed $4.4 billion.

(Reporting by Tokyo markets team; Editing by Stephen Coates)