TOKYO, March 26 Talks on an alliance between
Sharp Corp and Hon Hai Precision Industry
will continue even though a deadline for a deal between the two
lapsed on Tuesday.
Hon Hai said it remained committed to buy a 9.9 percent
stake in Sharp, that would make the Taiwanese company the
largest shareholder in the Japanese TV maker.
"Hon Hai hopes that with the support of a consortium of
financial institutions, we can conclude the investment within
three months of the price agreement," the company said in a
Hon Hai also said both sides had agreed to work towards an
agreement after talks on Sunday.
A Sharp spokeswoman said talks on business alliances were
still ongoing, but declined to comment on the 9.9 percent stake
or the three-month time-frame.
Sharp, bailed out by a group of banks last year, had said
earlier that the deadline for Hon Hai to buy a stake had lapsed
without any deal.
Talks with Hon Hai had stalled after Sharp balked at its
demand for a degree of management control. Hon Hai also sought
to lower a $708 million price tag after Sharp's shares slumped
in the wake of losses that prompted a bank rescue last year.
The banks, which include Mizuho Financial Group Inc
and Mitsubishi UFJ Financial Group Inc had not been
expecting a revised deal with Hon Hai, sources told Reuters last
Sharp has concluded smaller investment deals with Samsung
Electronics Co Ltd and Qualcomm Inc..
Sharp already has links with Hon Hai through their joint
ownership of the world's most advanced LCD plant in Sakai,
western Japan. The two companies are also cooperating in
smartphones in the Chinese market.
Sharp's shares fell 1.7 percent to close at 290 yen in Tokyo
on Tuesday, before Sharp's announcement that the deadline for
the deal with Hon Hai had lapsed.