Sharp: Foxconn talks could continue beyond March deadline

“Sharp Corp.’s talks with Taiwan’s Foxconn Technology Group over a capital tie-up could continue beyond a March deadline if a deal isn’t reached by then, a senior executive at the Japanese electronics maker said,” Mariko Yasu and Masatsugu Horie report for Bloomberg.

“While the two companies previously agreed on a March 26 target, negotiations could be extended ‘depending on the situation,’ the executive said at a press briefing given yesterday on condition of anonymity,” Yasu and Horie report. “Sharp, the maker of Aquos televisions and supplier to Apple Inc., has been renegotiating terms of a proposed stake sale to Taipei-based Foxconn after its share price plunged amid widening net-loss estimates.”

Yasu and Horie report, “The company hasn’t been able to reach a new deal with Foxconn, founded by billionaire Terry Gou and which initially agreed in March to buy a 9.9 percent stake in Osaka- based Sharp for 550 yen a share, or 67 billion yen… The Japanese company assumes a deal with Foxconn can be reached, President Takashi Okuda said Nov. 1. ‘Everything is on schedule,’ Gou said Nov. 7 when asked about the talks. In July, Sharp sold a stake in an LCD factory in Sakai, central Japan, to Gou, who will jointly run the 10th-generation facility that is the most advanced in the industry. The tie-up is a ‘major success’ and has increased operation rates at the plant, the senior Sharp executive said yesterday.”

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