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Ailing electronics maker Sharp announced on Thursday that it had agreed to be taken over by Foxconn, marking the largest acquisition of a Japanese tech firm by a foreign company and bolstering Foxconn's position as Apple Inc's biggest supplier.
However, Foxconn later said it would delay the signing, as Sharp had included new terms that needed to be clarified.
Foxconn, known formally as Hon Hai Precision Industry Co Ltd , said that Sharp on Wednesday morning had "couriered over a new key document to the management of Hon Hai." Foxconn said it responded to Sharp on the same day that the content needed to be clarified before a deal could be signed.
It hopes to be able to clear up the matter as soon as possible, it said in a statement.
Foxconn will acquire two-thirds of Sharp, which would issue around $4.4 billion worth of new shares to Foxconn. Foxconn's total investment is set to be more than 650 billion yen ($5.8 billion) in the loss-making liquid crystal display maker, a source familiar with the matter said.
Sharp's stock tumbled 14 percent as the share dilution looked larger than expected, with traders noting that the deal included the issuance of a class of shares that would be convertible next year.
Read more here. (NBC News)
However, Foxconn later said it would delay the signing, as Sharp had included new terms that needed to be clarified.
Foxconn, known formally as Hon Hai Precision Industry Co Ltd , said that Sharp on Wednesday morning had "couriered over a new key document to the management of Hon Hai." Foxconn said it responded to Sharp on the same day that the content needed to be clarified before a deal could be signed.
It hopes to be able to clear up the matter as soon as possible, it said in a statement.
Foxconn will acquire two-thirds of Sharp, which would issue around $4.4 billion worth of new shares to Foxconn. Foxconn's total investment is set to be more than 650 billion yen ($5.8 billion) in the loss-making liquid crystal display maker, a source familiar with the matter said.
Sharp's stock tumbled 14 percent as the share dilution looked larger than expected, with traders noting that the deal included the issuance of a class of shares that would be convertible next year.
Read more here. (NBC News)
