Rumor: Foxconn offers 100 billion yen less for Sharp

Taiwanese Foxconn is likely to offer 100 billion yen less for its majority stake in Sharp than previously planned, Japanese media report. The reduction of almost 800 million euros follows ‘new information’ about Sharp.

According to Reuters, the cut reported by Japan’s Jiji News means that Foxconn’s bid, formally known as Hon Hai, now stands at 389 billion yen after a previous cut. Converted that is 3.1 billion euros. At the very first reports about the takeover, it seemed that 5 billion euros were still on the table. Foxconn and Sharp have been negotiating a merger for some time and the former already had a minority stake in the Japanese electronics company.

At the end of February, Foxconn appeared to have reached an agreement for a majority stake, but the takeover broke down at the last minute due to “new information” Foxconn had obtained. It was probably a question of worse-than-expected accounting figures. Sharp may have to publish poor results in its figures for the financial year ending at the end of March.

Foxconn wants to save part of the ailing Sharp to secure the LCD supply for its smartphone and tablet customers. Sharp would remain largely independent and the Japanese management would not be replaced.