Sharp to Give Preference to Foxconn’s Rescue Plan, NHK Says
- Deal would hand the Apple iPhone assembler a surprise victory
- INCJ had been expected to beat out Foxconn for the company
(FILES) This file photo taken on February 1, 2012 shows customers watching televisions under a Sharp logo at an electrical shop in Tokyo. Shares in Japan's Sharp dived almost 30 percent to their lowest level in nearly four decades on August 3, 2012, after the consumer electronics giant warned its annual loss would be bigger than first thought. AFP PHOTO / FILES / KAZUHIRO NOGI (Photo credit should read KAZUHIRO NOGI/AFP/GettyImages)
Photographer: Kazuhiro Nogi/AFP via Getty ImagesSharp Corp. surged after Japanese broadcaster NHK reported it planned to give preference to a rescue plan from Taiwan’s Foxconn Technology Group over a government-backed fund. The struggling display maker said it’s still in negotiations over a bailout and will make a final decision within a month.
Foxconn and government-backed Innovation Network Corp. of Japan are vying for Sharp, which teetered on the brink of bankruptcy in 2012 after its Aquos TVs lost market share to those from Samsung Electronics Co., LG Electronics Inc. and lower-cost Chinese rivals. Their battle is regarded as a litmus test of Japan’s willingness to open its economy.