Sharp to suspend tie-up talks with Hon Hai, report says

Feb 23, 2013

Struggling Japanese electronics maker Sharp plans to suspend tie-up negotiations with Taiwan's Hon Hai and search for new capital partners, local media reported on Saturday.

Cash-strapped Sharp had been trying to seal a capital-injection deal with Hon Hai Precision, also known as Foxconn, by a March 26 deadline.

But Sharp said it would be "difficult to conclude the deal by the deadline due to various factors, including different opinions on cooperation in the field of small- and mid-sized LCDs", the Mainichi Shimbun said.

The recent decline in Sharp's share value was another factor behind the suspension, the daily added.

It was not known if the suspension was permanent but Sharp would now shift its focus to other companies, the newspaper said.

Kyodo News added that the two firms would maintain their existing cooperation arrangement at Sharp's LCD factory in Sakai, western Japan.

Last year, Sharp reached an $800-million capital injection deal with Hon Hai, which makes Apple gadgets in China, but the deal stalled as Sharp's share price nosedived.

In December, the company said it had struck a separate $112 million with chipmaker Qualcomm that would see the pair develop energy-efficient for smartphones using the Japanese firm's technology.

The maker of Aquos-brand electronics, like rivals Sony and Panasonic, has been hammered by credit rating downgrades and record losses, which saw the century-old firm warn about its own survival last year.

Sharp said earlier in the month that it had lost 424 billion yen ($4.5 billion) for the nine-month period, while keeping its full-year net loss estimate unchanged at 450 billion yen.

has embarked on a painful restructuring including thousands of job cuts and slashed wages from the factory floor to the .

It also said it would put up real estate as collateral for desperately needed , including its Osaka headquarters, as it pursued tie-ups with domestic and foreign firms.

Explore further: Comcast wins more Internet customers, ad sales up

add to favorites email to friend print save as pdf

Related Stories

Sharp shares soar in Tokyo on profit report

Jan 11, 2013

Sharp shares jumped nearly 13 percent in Tokyo trading on Friday after a Japanese media report said the embattled electronics giant logged an operating profit in the last quarter of 2012.

Japan's Sharp in TV tie-up talks with Lenovo

Jan 17, 2013

Shares in struggling Japanese electronics maker Sharp shot up 7.30 percent on Thursday on reports it is in talks with Chinese computer giant Lenovo Group to work together on the production of televisions.

Sharp shares hit by reports of Hon Hai deal rethink

Aug 06, 2012

Shares in Japan's Sharp, which slumped 28 percent at the end of last week after a poor earnings report, fell further Monday after Taiwan's Hon Hai Precision said it would renegotiate a deal to invest in it.

Recommended for you

Comcast wins more Internet customers, ad sales up

2 hours ago

Comcast Corp.'s third-quarter net income jumped 50 percent in the third quarter, helped by a one-time tax settlement, growth in Internet subscribers and fewer defectors from its cable service.

Netflix to stream new online TV series, 'Bloodline'

2 hours ago

Fresh from commercial and critical success with hit shows "House of Cards" and "Orange is the New Black," Netflix on Thursday announced a new online series, "Bloodline," set for release in March.

Yahoo CEO defends strategy in face of criticism

10 hours ago

Signaling her reign has reached a pivotal juncture, Yahoo CEO Marissa Mayer is trying to convince restless shareholders that the long-struggling Internet company is heading in the right direction.

Sk Hynix logs all-time high Q3 earnings

11 hours ago

SK Hynix, the world's second-largest memory chip maker, reported Thursday a record high quarterly net profit for the three months to September on strong sales and currency earnings.

User comments : 0