Sharp is favoring an acquisition offer from Foxconn over a potential rescue from Japanese investors.
Sharp has lost market share in the consumer electronics business over the last few years while prices for its display panels have sunk. The two combined have put Sharp in a precarious position; it has already been bailed out once. Innovation Network Corp. of Japan, a government-backed fund, has offered to inject capital into the company to keep it solvent.
INCJ’s offer, however, is about half that of a $5.5 billion take-over bid from Taiwan’s Foxconn. Foxconn is more aggressively pursuing Sharp, says the Wall Street Journal, and is pressing the firm to accept its offer.
\Foxconn Chairman Terry Gou is traveling to Japan Thursday to meet with Sharp CEO Kozo Takahashi and the company’s leadership team. Takahashi said, “The two offers are not equal,” and that the company will focus on Foxconn’s offer more so than INCJ’s.
Foxconn is known as one of Apple’s primary manufacturing partners.
