Economic Reporter :
Shares in electronics giant Sharp lost 11% in Tokyo amid reports that the delay in its takeover by Taiwanese manufacturer Foxconn was due to previously undisclosed losses.
The $4.3bn (£3.08bn) deal was announced by Sharp on Thursday.
But Foxconn later said it would not sign the deal until it clarified “new information” Sharp had provided, without giving any specifics, reports the BBC.
Foxconn, also known as Hon Hai, assembles most of the world’s iPhones.
Several unconfirmed reports quoting unnamed sources have emerged saying that the “new information” provided at the last minute had to do with huge losses on Sharp’s balance sheet.
Nikkei said Sharp had on Wednesday morning sent Foxconn documents listing the details of these losses, including severance pay, breach-of-contract penalties, and repayments of government funds.
But another reports said the liabilities could also end up being much lower if not all of them are incurred.
Shares in electronics giant Sharp lost 11% in Tokyo amid reports that the delay in its takeover by Taiwanese manufacturer Foxconn was due to previously undisclosed losses.
The $4.3bn (£3.08bn) deal was announced by Sharp on Thursday.
But Foxconn later said it would not sign the deal until it clarified “new information” Sharp had provided, without giving any specifics, reports the BBC.
Foxconn, also known as Hon Hai, assembles most of the world’s iPhones.
Several unconfirmed reports quoting unnamed sources have emerged saying that the “new information” provided at the last minute had to do with huge losses on Sharp’s balance sheet.
Nikkei said Sharp had on Wednesday morning sent Foxconn documents listing the details of these losses, including severance pay, breach-of-contract penalties, and repayments of government funds.
But another reports said the liabilities could also end up being much lower if not all of them are incurred.
