Tough negotiations to Foxconn Joining Sharp
The negotiations on the planned entry of a subcontractor Foxconn when ailing electronics company Sharp run tough. In a roundtable discussion on Thursday was no solution has been found, reported the Japanese news agency Kyodo. Negotiations are scheduled to resume on Friday.
Foxconn manager Tai Jen-wu said, go on talks about how the cooperation between the two companies could improve the business at Sharp. Contract manufacturer headquartered in Taiwan was willing to help Sharp in many ways, it said without providing further details.
Foxconn is the world's largest contract manufacturer and produced for, among other things Apple, Dell and Hewlett-Packard. Following the agreement of March wanted Foxconn buy almost ten percent of Sharp, at a price of 550 yen (5.61 euros) per share. The course of the paper, however, given the high losses at Sharp slumped dramatically on Thursday, the stock cost only 227 yen (2.31 euros). Thus, the deal must be renegotiated. This Friday, the price fell further to below 200 yen (about 2 euros), following initial reports began circulating that Foxconn boss had left without negotiation result from Japan.
Sharp for the entry of Foxconn is extremely important because it will bring fresh money. Recently it has been speculated on possible alternatives, such as a new giant credit the creditor banks or investment by competitors such as Kyocera and Toshiba. According to recent reports, Japan's Sharp also examines the extension of the planned job cuts of 5,000 to 10,000 employees
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