Foxconn asks banks for compromises to make Sharp takeover deal work
Apple's biggest manufacturing partner, Foxconn, is angling for compromises from two key lenders before it goes ahead with its planned takeover of Sharp, a report said on Tuesday.
The company wants Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ to provide Sharp with financial help should some potential liabilities arise, according to Japan's Nikkei. Foxconn is also said to be proposing that Sharp shares held by the banks be bought at a value below the originally suggested 100 billion yen, or $879 million.
Sharp president Kozo Takahashi is said to have met with Foxconn chairman Terry Gou on Monday, in a sign that a deal is still progressing despite delays. Some Nikkei sources anticipate an agreement later this week.
Foxconn was originally expected to complete the Sharp acquisition in late February, but suddenly postponed the deal after reportedly discovering undisclosed liabilities totalling 300 billion yen ($2.7 billion). Those were later suggested to be simply "worst-case" risks, rather than firm obligations.
Absorbing Sharp could further strengthen Foxconn's relationship with Apple, allowing it to sell display panels and not just assembly services. Apple might potentially be inclined to accept higher order prices in exchange for the convenience of the arrangement, and the chance to divert display business from chief rival Samsung.
The company wants Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ to provide Sharp with financial help should some potential liabilities arise, according to Japan's Nikkei. Foxconn is also said to be proposing that Sharp shares held by the banks be bought at a value below the originally suggested 100 billion yen, or $879 million.
Sharp president Kozo Takahashi is said to have met with Foxconn chairman Terry Gou on Monday, in a sign that a deal is still progressing despite delays. Some Nikkei sources anticipate an agreement later this week.
Foxconn was originally expected to complete the Sharp acquisition in late February, but suddenly postponed the deal after reportedly discovering undisclosed liabilities totalling 300 billion yen ($2.7 billion). Those were later suggested to be simply "worst-case" risks, rather than firm obligations.
Absorbing Sharp could further strengthen Foxconn's relationship with Apple, allowing it to sell display panels and not just assembly services. Apple might potentially be inclined to accept higher order prices in exchange for the convenience of the arrangement, and the chance to divert display business from chief rival Samsung.
Comments
Sharp hasn't been Apple top two supplier in the last two years at least, Samsung neither, JDI and LG took most order.
There is no longer a need for Apple to even have some control of Sharp, their Roadmap, at least publicly has nothing that would interest Apple. OLED by LG is pretty much decided. Both LG and JDI has a very decent LCD roadmap. In my previous thoughts and post i used to think Apple "may" be have come cases in here. But now this is purely foxconn.
While Apple may desire to take its business elsewhere, LG itself makes several Android based handsets that compete with the iPhone. JDI isn't even close when it comes to OLED. And Apple had better move to OLED quickly. The Only reason I have stayed on the iPhone is because I won't move over to Android. If Samsung produces a decent handset with OLED but based on Tizen, I might defect. LCD is pitiful when compared to OLED.
And I could care less about the whole argument regarding pixel burn in. I don't keep my phones for longer than 3 years, so it really doesn't matter. And the Apple Watch users haven't mentioned any problems with the OLED panels.
If Apple desires to continue to produce conventional LCDs for users that want them, fine. They need to give the rest of us the option of OLED.