Sharp, Foxconn still talking, still differ

Bloomberg

Foxconn Technology Group and Sharp Corp. will continue talks after their one-year deadline to reach an investment accord expires Tuesday, two sources said.

The firms have been unable to resolve differences about control and no agreement is expected soon, the sources said, asking not to be identified as the talks are private.

Sharp, the unprofitable maker of Aquos TVs, display panels and refrigerators, on March 27 last year announced Foxconn group companies would buy a 9.9 percent stake for ¥66.9 billion. Foxconn’s billionaire founder, Terry Gou, invested ¥66 billion of his own funds to buy a stake in the Osaka-based company’s TV-panel unit, later renamed Sakai Display Products Corp.

The period offering 121.6 million Sharp shares for sale at ¥550 each was to run from May 31 to March 26, Sharp said in a statement at the time.

In November, Sharp widened its full-year loss forecast to ¥450 billion and said there was “material doubt” about its ability to survive. Since then, the TV maker has agreed to sell stakes to Qualcomm Inc. and Samsung Electronics Co.