September 3, 2012 / 12:15 AM / 7 years ago

Sharp president to seek Hon Hai deal in Taiwan this week: paper

Advertisements for Sharp are seen at an electronics shop in Tokyo August 27, 2012. Hon Hai Precision Industry Chairman Terry Gou said on Monday an agreement to buy a 9.9 percent stake in Japan's Sharp Corp was unchanged "in principle", after Japanese media said the Taiwanese company would not seek to raise its planned ownership in the struggling TV maker. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) - Sharp Corp’s (6753.T) president will travel to Taiwan this week in a bid to conclude a deal that will make Hon Hai Precision Industry Co Ltd (2317.TW) the embattled Japanese TV maker’s biggest shareholder, the Sankei daily reported on Monday.

Sharp President Takashi Okuda will meet with Hon Hai’s chairman, Terry Gou, the paper said, without citing sources. Gou, who traveled to Japan last week, returned home on Thursday, having canceled a planned meeting with Sharp’s senior executives slated for Friday.

“We can’t disclose our executives’ schedule, but we are hoping to settle the negotiations as early as possible,” Sharp spokeswoman Miyuki Nakayama said.

Sharp’s shares resumed their slide after Gou’s unexpected departure prolonged uncertainty about Sharp’s ability to secure a lifeline.

The stock dropped 12.8 percent on Friday, and fell another 7 percent in early trading on Monday after ratings agency Standard & Poor’s downgraded the company’s debt to junk status after markets closed last week.

Sharp’s chief financial officer, Tetsuo Onishi, on Friday said his company regretted that it had been unable to conclude a partnership pact. The debt-saddled century-old Japanese maker wants to sell Hon Hai a 9.9 percent stake in return for badly needed cash.

Reporting by Tim Kelly and Mari Saito; Editing by Chris Gallagher

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