A bidding war for Toshiba (TYO:6502) subsidiary Toshiba Medical is reportedly heating up among a slew of private equity players and rival corporations.

Toshiba, which said last month that it’s seeking outside investors to buy a stake in the healthcare business amid laying off nearly 7,000 workers, wants to focus on its core nuclear energy and chip businesses.

Private equity shops KKR and Bain Capital and Toshiba rivals Fujifilm Holdings (TSE:4901) and Canon (NYSE:CAJ) are in the running for a controlling share in Toshiba Medical, people familiar with the process told Reuters today. The deal could fetch more than $3 billion (¥400 billion), they said.

Other offers include joint bids by Konica Minolta (TYO:4902) and PE shop Permira, and Sony Corp. (TYO:6758) and Carlyle Group. KKR teamed up with Mitsui (TYO:8031), the sources said.

The Development Bank of Japan is also considering a run at Toshiba Medical, perhaps in conjunction with a successful bidder, according to another source.

The 1st round of bidding is slated to close Jan. 29, with a 2nd round determining issues such as the size of the stake, according to the sources.

Canon CFO Toshizo Tanaka today confirmed his company’s interest in Toshiba Medical, saying Canon “was raising its hand” in the bidding war.

Toshiba is embarking on a massive restructuring aimed at righting the ship after a $1.3 billion accounting scandal, meaning massive job cuts for its consumer electronics business and the sale of a TV plant in Indonesia. The total number of layoffs could reach 10,000, including cuts already under way and voluntary early retirement.