August 17, 2012 / 5:25 AM / 5 years ago

Hon Hai seeking 20 pct stake in Sharp: Nikkei

A man looks at Sharp Corp's Aquos TVs displayed at an electronics store in Tokyo August 2, 2012. REUTERS/Yuriko Nakao

TOKYO (Reuters) - Taiwan’s Hon Hai Precision Industry (2317.TW) is seeking to raise its stake in Japanese LCD maker Sharp Corp (6753.T) to about 20 percent from a previously agreed 9.9 percent, the Nikkei business daily reported in its online edition on Friday.

Sharp’s lenders are telling the troubled company that a capital-tie up with Hon Hai, the world’s leading contract electronics maker and a key supplier to Apple Inc (AAPL.O), is a prerequisite for further financial support, the Nikkei said.

Hon Hai is said to be seeking a price of about 200 yen per share for Sharp, compared with the 550 yen initially agreed in March. Sharp’s shares shot up as much as 13 percent on the report. They were up 4.0 percent at 182 yen in late afternoon trade.

Reporting by Mayumi Negishi; Editing by Chang-Ran Kim

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