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Sharp Surges Third Day After Reports Banks May Forgive Loans

  • Debt amnesty may pave way for stake by government-backed fund
  • INCJ has been said to be considering a stake in display maker
Updated on

Sharp Corp. climbed a third day in Tokyo after reports the debt-strapped display maker’s main lenders were considering forgiving loans to facilitate an investment by a government-backed investment fund.

The shares surged 14 percent to close at 150 yen, bringing their three-day gain to 25 percent, the most since May 2013. The stock briefly soared on Tuesday by as much as 36 percent, the most since 1974, with trading volume more than eight times the three-month average. Mizuho Financial Group Inc. and Mitsubishi UFJ Financial Group Inc. may forgive loans to secure an investment from Innovation Network Corporation of Japan, Kyodo reported without attribution Friday.