Sharp and Foxconn set to sign deal next week

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By Larry Banks

Japan’s Sharp Corp and Taiwan’s Foxconn are about to sign a huge takeover deal next week after a string of delays, with both sides to agree on a smaller bailout than planned for the troubled electronics firm Sharp, according to a report in Reuters.

The two giants will hold board meetings on Wednesday to seal the deal and official sign the next day, said two sources with knowledge of the talks.

However, both sources have declined to be identified as they are not authorised to talk with the media. A spokesman from Sharp declined to comment, and Foxconn officials were not available, Reuters reports.

Foxconn, otherwise known as Hon Hai Precision Industry Co, is reportedly set to reduce its 489 billion yen ($4.3 billion) offer for new Sharp shares, by around 100 billion yen ($884 billion).

Last month, the firms were said to be close to signing the deal, but Foxconn paused the bid after revelations of undisclosed liabilities at the Japanese firm.

The takeover would be the largest by a foreign company in Japan’s tech sector. In negotiating with Foxconn, Sharp is believed to have turned down a rival offer by a state fund.

The deal will no doubt boost Foxconn’s position as Apple’s main manufacturer, and provide Sharp the funds to mass produce organic light-emitting diode (OLED) screens by 2018, which just so happens to be the time that Apple is said to adopt the next generation displays in its iPhone line.

SOURCE: Reuters.

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