Foxconn seeking concessions from shareholding banks in attempt to rescue Sharp takeover
The Nikkei Asian Review reports the latest on the on-off-maybe acquisition of display maker Sharp by iPhone assembler Foxconn.
Various potential deals appear to be under discussion with both Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ. These include paying the banks less for the shares they hold, reducing the interest rate payable on a joint loan to Sharp and agreeing that the banks will provide financial support in the event that the feared liabilities do indeed materialize after the deal is done.
It was initially reported last month that the deal had been done before details of potential Sharp liabilities put it into doubt. Negotiations then resumed.
It had been suggested at one stage that Apple may help to support the deal, but as there has been no recent mention of this, we’d say this currently seems unlikely. Foxconn has, however, long played a role in helping keep Sharp afloat.
