Sharp, Foxconn Inch Closer to Deal (Maybe)
TAIPEI -- Foxconn will hold a scheduled board meeting this week as its deal to acquire Sharp continues to twist and turn in the financial wind.
Both companies indicate that the deal is closer to completion, after having been held up for nearly a month pending resolution of Sharp's debts.
Sharp issued a statement today saying it wants an agreement as soon as possible. Sharp is in danger of defaulting on billions of dollars in loans, although financial papers are reporting its banks are willing to push back its loan deadlines, some of which come due at month's end.
Hon Hai (Foxconn is its trade name) has its next board meeting on March 30.
Analysts are speculating that the ODM/EMS might be taking advantage of Sharp's credit deadlines to force more favorable terms.
In February Sharp's board agreed to accept an offer from Foxconn to purchase the company for roughly $6.3 billion, only to see that deal get delayed the next day over the latter's concerns of higher-than-realized Sharp debt. Foxconn reportedly is now willing to pay closer to $3.4 billion, still higher than a $2.65 billion bid from Japan-based INCJ.
