A last-minute hitch might just put an end to Taiwan’s Foxconn’s proposed takeover of Japanese electronic maker Sharp. According to Reuters, Foxconn has reportedly tabled the deal in the face of some last-minute discoveries of previously undisclosed liability.
The discovery of the hiccup came just hours after embattled Sharp announced it had agreed to be bought out by Foxconn. Foxconn has now officially said they will not sign on the dotted line, so to speak, before clearing up terms around a “new key document” from Sharp.
Foxconn offered no further explanation. Unnamed sources indicate the liabilities could be worth hundreds of billions of yen.
The deal that was announced would have seen Sharp — a loss making firm at this point — issue $4.4 billion in share for Foxconn to buy, giving Foxconn a 2/3 stake in the firm.
If a deal does go through, it would boost Foxconn’s position as Apple Inc’s main contract manufacturer and enable Sharp to start mass-producing organic light-emitting diode (OLED) screens by 2018, around the time Apple is expected to adopt next-generation displays for its iPhones.
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