Roger Fingas
Sharp is indeed leaning towards a takeover by Apple's main manufactuing partner, Foxconn, but no exclusive negotiating rights have been offered, the company's CEO announced at a Thursday press conference.
"We are putting more resources on studying the Hon Hai [Foxconn] offer," said Kozo Takahashi, according to the New York Times. "We are considering the offers from the point of view of all of Sharp's stakeholders, its employees and shareholders."
Takahashi denied an NHK report that Sharp is giving Foxconn exclusive negotiating rights, however. That at least leaves open the possibility of a deal with Innovation Network Corp., a state-backed Japanese fund that would fold Sharp's display business into Japan Display, itself formed from units spun off of Hitachi, Sony, and Toshiba.
Foxconn's offer is believed to be worth at least 600 billion yen (about $5 billion), technically twice as much money as Innovation. The offers are structually different though, and Innovation's deal might be more likely to be approved by Japanese regulators, as well as garner support from various parties worried about a foreign firm swallowing a Japanese icon and weakening local industry. Foxconn has promised not to cut any jobs, but Japanese display suppliers are already fighting to keep up with Chinese and Korean rivals.
Takahashi noted that Sharp will make a decision within the next month.
Whether Foxconn or Innovation wins, Apple orders will be one of the chief prizes of a takeover. Foxconn would be able to provide displays to Apple as well as manufacturing lines, while Japan Display would be able to increase its existing Apple display production.
Christine McKee
Andrew Orr
Charles Martin
Marko Zivkovic
Wesley Hilliard
7 Comments
Would rather see Innovation win.
They would know what do do with Shsrp's technology more I feel.
About 20% of their revenue is from Apple, but they also have a huge IP portfolio they could license or sell. Competition from Chinese and Korean display makers has put a lot of pressure on them. Sort of the same story except with household appliances that shuttered Sanyo a few years ago.
No one would probably say it in print, but in Japan, a Foxconn takeover of Sharp would be viewed similarly to a takeover of some part of the American cattle industry in Texas by Muslim's.
So the action under consideration is a takeover of SHARP by Foxconn. Yet the headline implies the reverse, by saying "Sharp leaning towards Foxconn takeover". SMH.