Sharp leaning towards Japan's Innovation over Foxconn in takeover bids - report

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Weighing takeover bids from both Taiwan's Foxconn and Innovation Network Corp. -- a fund backed by the Japanese government -- Sharp management is currently leaning in the second direction, a report said on Thursday.




Executives are leaning towards Innovation despite it offering a lower bid, sources noted to Bloomberg. The publication added that shareholders don't appear to be expressing any concerns, and that the company's bank partners are supportive.

Although the sources didn't say why Innovation has support, the latter's interest may reflect a government's desire to preserve jobs and Japanese industry. Electronics are important to the country's economy and the alternative might be foreign corporations, like Foxconn and Samsung, pushing Japan farther to the sidelines.

Innovation would most likely fold Sharp's display business into Japan Display, which itself was created from units spun off of Sony, Toshiba, and Hitachi.

Whichever route Sharp goes, the resulting entity will have Apple has a major client. Japan Display is an existing supplier, while Foxconn is the company's major manufacturing partner.

Comments

  • Reply 1 of 7
    snovasnova Posts: 1,281member
    ..in other news... Ford announces they will be pulling out of Japan because the vast majority Japanese citizens only buy cars from Japanese companies. 

    That is impressive. 
    brian greencornchip
  • Reply 2 of 7

    Although the sources didn't say why Innovation has support, the latter's interest may reflect a government's desire to preserve jobs and Japanese industry.
    And China's aggression in the South China Seas may be another reason...
    cornchip
  • Reply 3 of 7
    brakkenbrakken Posts: 676member
    Sharp, late to the party, realises where the profits are.
  • Reply 4 of 7
    snova said:
    ..in other news... Ford announces they will be pulling out of Japan because the vast majority Japanese citizens only buy cars from Japanese companies. 

    That is impressive. 
    So, what exciting car does Ford make that would make me want to choose them over a reliable Japanese make? I think Japanese still like smaller cars. Most American cars are just too big!
  • Reply 5 of 7
    ksecksec Posts: 1,545member
    hentaiboy said:

    Although the sources didn't say why Innovation has support, the latter's interest may reflect a government's desire to preserve jobs and Japanese industry.
    And China's aggression in the South China Seas may be another reason...
    Foxconn is not from China for the 10 million time.

    I think Foxconn really wanted all the Sharp technology to go with Innolux.
     
    ronn
  • Reply 6 of 7
    hentaiboy said:

    Although the sources didn't say why Innovation has support, the latter's interest may reflect a government's desire to preserve jobs and Japanese industry.
    And China's aggression in the South China Seas may be another reason...
    Foxconn is Taiwanese's so it has nothing to do with it. Still, Japanese will prefer Japanese's, unsurprisingly.
    edited January 2016 ronn
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