TOKYO/TAIPEI Dec 27 Struggling Japanese TV
maker Sharp Corp's plan to sell its Nanjing plant in
China to Taiwan's Hon Hai Precision Industry Co Ltd
has been frozen and may not materialise, a source familiar with
the matter said on Thursday.
Sharp, which supplies screens to Apple Inc for its
latest iPhone, considers selling its Mexican plant to Hon Hai to
be more important, and talks to sell the Nanjing plant, which
assembles large-size liquid crystal display TVs, may take time,
said the source, who was not authorised to speak to the media.
Both Sharp and Hon Hai declined to comment.
Earlier this month, Sharp struck a deal with Qualcomm Inc
for the U.S. chipmaker to invest as much as $120
million to help the Japanese firm stay afloat, and to jointly
develop new power-saving screens.
That deal has helped soften banks' stance towards Sharp,
allowing it to make stronger demands of Hon Hai, said a source
at one of Sharp's suppliers.
Sharp had been expected to make Hon Hai its biggest
shareholder, adding to an earlier agreement to sell the
Taiwanese company a stake in its advanced television LCD panel
in Sakai, western Japan.
That agreement has stalled as Sharp's losses have mounted,
and its executives remain opposed to giving Hon Hai managerial
Shares in Sharp were down 1.9 percent against a 1.3 percent
rise in Tokyo's electric machinery index.