“Taiwan’s Hon Hai Precision Industry Co offered to buy Sharp Corp’s struggling liquid panel display business and plans to seek funding from Apple Inc, the Nikkei business daily reported on Monday,” Makiko Yamazaki, Ritsuko Ando, and J.R. Wu report for Reuters.
“The report did not specify how much Hon Hai, also known as Foxconn, was willing to pay for the loss-making operations, but said it would seek funding from Apple, a key Sharp customer,” Yamazaki, Ando, and Wu report. “Osaka-based Sharp was once a highly profitable manufacturer of premium TVs and a favoured screen supplier to Apple and others, but it has come under heavy pricing pressure from Asian rivals. In May, it sought a bailout of roughly $1.9 billion from banks and promised to cut 5,000 jobs, or 10 percent of its staff.”
“Tie-up talks between Hon Hai and Sharp fell through in 2012 after the Japanese company baulked at demands that it said would have given the Taiwanese firm too much control,” Yamazaki, Ando, and Wu report. “The two corporations remained in contact and jointly operate a plant in Osaka, western Japan, that makes large LCD panels.”
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MacDailyNews Take: Poor Sharp really is in desperate need of some good news.
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