Foxconn puts new $6.3bn bid for Sharp on hold

By Max Langridge
published

Following an initial bid of $5.4bn, Foxconn's new offer is reported to have been accepted by the Japanese display manufacturer – but the manufacturer of the iPhone still wants to seal the deal.

The Nikkei Asian Review reports that Sharp has accepted a takeover bid from Foxconn - but it seems the company is not quite ready to sign on the dotted line.

Foxconn, the manufacturing giant responsible for manufacturing the iPhone, has now bid around $1bn more than it offered back in January.

However, despite reports of the deal being accepted, The Wall Street Journal claims Foxconn is putting the deal on hold after receiving a list of contigent liabitilies - costs that may arise in the future. The report does go on to state that Foxconn is still keen to complete the deal.

In a statement, Foxconn said: “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.”

Sharp was reportedly holding off on accepting a bid from Foxconn, preferring to negotiate with Japanese investment fund, The Innovation Network Corp. of Japan (INCJ). The fund had previously bid 300 billion yen ($2.6bn) for Sharp.

Sharp has been under increasing financial pressure in the past few years, with the American side of the business being sold to Hisense in July 2015.

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Max Langridge

Max was a staff writer on What Hi-Fi? and subsequently spent a good few years writing news and features for various technology and hi-fi publications, before jumping on a plane in search of a more fruitful life in Australia. Now based in Byron Bay, he writes about tech, health, fitness and style.