Wait a Sec, Foxconn's Massive Sharp Takeover Has Been Put on Hold

By Aatif Sulleyman on at

Hold your horses, that massive deal between Foxconn and Sharp doesn’t seem to have gone through yet. According to new reports, the Taiwanese firm is delaying the completion of the takeover, due to fresh information regarding Sharp’s future financial risk. While the Japanese outfit’s annual report flags up ¥17.2 billion (£109 million) in contingent liabilities -- costs it may face in the future, depending on lawsuits, contracts and other variables -- the figure may in fact lie at the ¥350 billion (£2.2 billion) mark.

It’s understood that Sharp’s report, which was made available to Foxconn yesterday, lists loads more contingent liabilities, but fails to include their potential financial impact. Foxconn is reviewing the situation, but isn’t believed to have pulled the cord yet.

“We already notified Sharp on the same day [before Sharp held its board meeting on Thursday] that our side had to clarify the contents,” said Foxconn. “We have to postpone the signing before both sides can reach an agreement. We hope to clarify it quickly and to bring this deal to a successful conclusion.”

Earlier today, it was reported that Sharp’s board had accepted a $6.2 billion (£4.4bn) buyout from Foxconn, in a deal that would make the flow of iPhone components a little easier to control. It's also got tongues wagging about future Apple devices with OLED displays. [WSJ]