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Wednesday, December 05, 2012
Hon Hai-Sharp Investment Talks To Continue


Hon Hai Precision will continue talkings with Sharp for shareholding investment despite Qualcomm's funding in the Japanese TV maker.

A Hon Hai official, who refused to be identified, told the China Economic News Service that the investment of Qualcomm in Sharp is not related with Hon Hai's plan of buying into Sharp. In addition, Hon Hai will continue considering to purchase TV plants under the auspices of Sharp, the official added.

Sharp and Qualcomm on Tuesday announced a strategic alliance, which will enable Qualcomm to own 5% stake in Sharp and become its largest shareholder.

In March this year, Hon Hai reached an agreement with Sharp for investing US$800 million in the latter, in exchange for 9.9% stake in Sharp. Subsequently, Sharp?s share prices plunged, prompting Hon Hai to negotiate with Sharp again for the investment plan.

In addition to Qualcomm, the Sharp is also reportedly talking with Intel and Dell for fund injection, as the 9.9 billion yen investment by Qualcomm cannot solve Sharp's financial problem.


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