Talks Between Sharp And Foxconn Continue
The chief executives of Sharp and Foxconn plan to continue their talks, a day after the world's largest contract maker of electronic goods put its takeover of the struggling Japanese firm on hold. Just hours after the Sharp announced it had decided to sell a two-thirds stake to Foxconn, the Taiwanese firm said it would not sign the deal until it had clarified some "new material information" from Sharp.
Sharp is said th have contingent liabilities of around 300 billion yen ($2.7 billion). That contrasts with Foxconn's own due diligence which had revealed liabilities of only just under 100 billion yen.
Sharp said in a statement on Friday that it has been disclosing its contingent liabilities properly.
"Sharp is currently discussing with Hon Hai Precision Industry to reach a definitive agreement by confirming our managerial status including Sharp's contingent risks. In addition, Sharp’s contingent liabilities have already been appropriately disclosed in our securities report and quarterly report based on accounting rules, and no further disclosure is recognized to be required," Sharp said.
In a brief statement late on Friday, Foxconn said: "Most of the contents of the material information Foxconn received on Wednesday morning, before Sharp's board meeting began on Thursday, had not been previously proposed nor offered during negotiations between the two sides."
The company added that both sides were consulting on the matter "with the aim of reaching a comprehensive understanding and resolution of the situation. We hope to reach a satisfactory agreement as soon as possible."
Bringing Sharp under Foxconn's umbrella could help Apple wean itself off rival Samsung Electronics as a supplier. It would also enable Sharp to start mass-producing organic light-emitting diode (OLED) screens by 2018, around the time Apple is expected to adopt the next-generation displays for its iPhones.