Sharp Close To Accepting Hon Hai's Rescue Plan

TOKYO, JAPAN - FEB. 4: Sharp Corp. is inclined to accept an offer from Taiwan's Hon Hai Precision Industry Co. to rescue the Japanese electronics maker, rather than a plan proposed by a state-backed fund, Sharp President Kozo Takahashi indicated Thursday. "We're throwing our resources into negotiations with Hon Hai," Takahashi said at a press conference, while adding that the Taiwanese firm, which has offered to purchase the Osaka-based company for more than 600 billion yen ($5 billion), "has strength in procurement and output" that will help create synergy. Sharp also said it will continue talks with public-private fund Innovation Network Corporation of Japan, which has proposed investing around 300 billion yen in Sharp in a scheme that would also involve assistance from its creditor banks. Struggling to keep its liquid crystal display business competitive with Asian rivals, Sharp is expecting to conclude a deal within around a month, Takahashi said. The Sharp board decided earlier in the day to enter final talks with Hon Hai, known for the trade name Foxconn, sources close to the matter said. But Hon Hai has yet to be granted preferred negotiating rights, Takahashi said. The INCJ had been widely seen as the leading candidate to rescue Sharp, reflecting the Japanese government's efforts to prevent Sharp's advanced technology from being acquired by foreign firms. But given the significant difference in the amount the two sides are willing to invest, Sharp management is leaning toward Hon Hai's offer, according to the sources. Hon Hai will also likely not seek a reshuffle in Sharp's top executives, meaning they will not be held immediately responsible for long failing to turn around the company's fortunes.
TOKYO, JAPAN - FEB. 4: Sharp Corp. is inclined to accept an offer from Taiwan's Hon Hai Precision Industry Co. to rescue the Japanese electronics maker, rather than a plan proposed by a state-backed fund, Sharp President Kozo Takahashi indicated Thursday. "We're throwing our resources into negotiations with Hon Hai," Takahashi said at a press conference, while adding that the Taiwanese firm, which has offered to purchase the Osaka-based company for more than 600 billion yen ($5 billion), "has strength in procurement and output" that will help create synergy. Sharp also said it will continue talks with public-private fund Innovation Network Corporation of Japan, which has proposed investing around 300 billion yen in Sharp in a scheme that would also involve assistance from its creditor banks. Struggling to keep its liquid crystal display business competitive with Asian rivals, Sharp is expecting to conclude a deal within around a month, Takahashi said. The Sharp board decided earlier in the day to enter final talks with Hon Hai, known for the trade name Foxconn, sources close to the matter said. But Hon Hai has yet to be granted preferred negotiating rights, Takahashi said. The INCJ had been widely seen as the leading candidate to rescue Sharp, reflecting the Japanese government's efforts to prevent Sharp's advanced technology from being acquired by foreign firms. But given the significant difference in the amount the two sides are willing to invest, Sharp management is leaning toward Hon Hai's offer, according to the sources. Hon Hai will also likely not seek a reshuffle in Sharp's top executives, meaning they will not be held immediately responsible for long failing to turn around the company's fortunes.
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Editorial #:
508682498
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Kyodo News
Data da criação:
04 de fevereiro de 2016
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Kyodo News
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