By Yuri Kageyama, Business Writer
TOKYO (AP) --Sharp Corp. announced Thursday it will accept a 489 billion yen ($4.4 billion) takeover by Taiwan's Hon Hai Precision Industry Co., also known as Foxconn, but Foxconn said it was not ready to sign the deal.
"We will have to postpone any signing of a definitive agreement until we have arrived at a satisfactory understanding and resolution of the situation," Foxconn Technology Group said in a statement.
It did not elaborate. If the deal goes through, Sharp would become the first major Japanese electronics maker to be acquired by a foreign company.
Foxconn is a major contractor to Apple Inc., assembling products such as iPhones.
Sharp chose Foxconn as its preferred partner in a two-day board meeting ending Thursday, and said Foxconn would gain a 66 percent stake in the company under the deal.
Sharp spokeswoman Nali Li said the company had no official comment on the statement from Foxconn.
It was unclear whether Foxconn was questioning the content of Sharp's announcement, or just requesting more time to look at details.
Sharp had been considering both Foxconn's bid and an offer from a Japanese government-backed consortium of Japanese investors.
Despite Japan's rapid globalization, some have expressed fears a Foxconn takeover will result in the country losing technology to foreign interests.
Media reports in Japan that a deal might be imminent had sent Sharp share prices initially higher on the Tokyo Stock Exchange, but they finished 14 percent lower after details of the deal leaked. Sharp made the announcement after trading ended.
Osaka-based Sharp has long been a prized brand in Japan, beginning with its sale of mechanical pencils, still known as "sharp pencils" here. It also pioneered hand-held electronic devices.
Sharp had its beginnings as a Tokyo-based metalworking shop in 1912. It later made its fame with Aquos flat-panel TVs and nifty Internet-connecting cellphones, long before the arrival of iPhones in Japan.
But its finances deteriorated in recent years as prices of LCD panels dropped, and it could not beat competition from Asian rivals.
Analysts say Sharp's future remains uncertain even with the takeover because of challenges in restructuring its consumer electronics operations.
Sharp suffered a 108 billion yen ($964 million) loss over the nine months through December. It has not released a full year profit or loss forecast.
Oscar and Emmy-Winning Composer Kris Bowers Joins Barking Owl For Advertising, Branded Content
Music, audio post and sonic branding house Barking Owl has taken on exclusive representation of Oscar and Emmy-winning composer Kris Bowers for advertising and branded content.
Bowers’ recent film scores include The Wild Robot and Bob Marley: One Love, alongside acclaimed past works such as The Color Purple (2023), King Richard and Green Book. His contributions to television are equally impressive, with scores for hit series like Bridgerton, When They See Us, Dear White People, and his Daytime Emmy Award-winning score for The Snowy Day.
In addition to his work as a composer, Bowers is a visionary director. He recently took home the Academy Award for Best Documentary Short Subject for his directorial work on The Last Repair Shop. The emotionally touching short film spotlights four of the people responsible for repairing the musical instruments used by students in the Los Angeles Unified School District (LAUSD). The Last Repair Shop reflects the positive influence that musical instruments have on the youngsters who play them, and the adults in the LAUSD free repair service who keep them working and in tune.
Barking Owl CEO Kirkland Alexander Lynch said of Bowers, “His artistry, diversity of style and depth of storytelling bring an unparalleled edge to the work we create for global brands. His presence on our roster reflects our continued commitment to pushing the boundaries of sound and music in advertising.”
Johanna Cranitch, creative director, Barking Owl, added, “Kris first caught my attention when he released his record ‘Heroes + Misfits’ where he fused together his jazz sensibility with a deeply ingrained aptitude for melody, so beautifully.... Read More