Sharp Says It’s in Talks With Foxconn on March Investment
Stock Chart for Foxconn Technology Co Ltd (2354)
Sharp will disclose any decision as soon as it’s reached, the Osaka, Japan-based company said in an e-mailed statement today. Foxconn, maker of Apple Inc. (AAPL) iPads, said Aug. 3 it will renegotiate the price of its investment in Sharp after the Japanese TV maker widened its loss forecast eightfold.
Shares in the maker of Aquos TVs have plunged 62 percent compared with the planned purchase price of 550 yen, prompting the Taiwanese company to review its purchase price. Foxconn said in March it agreed to buy 9.9 percent of the Osaka-based company for 67 billion yen ($854 million).
Taiwan’s Investment Commission sent the original application back to Foxconn, asking for more information on the group’s forecast for profit from the deal, it said yesterday. The regulator and Foxconn were unable to provide details on the expected return.
Foxconn plans to invest in Sharp through its two Taipei listed units, Hon Hai Precision Industry Co. (2317), the world’s largest contract manufacturer of electronics, and Foxconn Technology Co. (2354), a maker of computer cases.
Sharp surged 9.4 percent, the biggest gain since March 28, to 209 yen on the Tokyo Stock Exchange.
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