Foxconn details offer for troubled sharp
Taiwan's Foxconn has detailed its offer for troubled electronics maker Sharp Corp, a person with direct knowledge of the talks said, potentially complicating a rescue bid led by a Japanese state-backed fund.
Innovation Network Corporation of Japan (INCJ), still seen as a front runner, will go head-to-head with Foxconn in the bidding for Sharp, and its third bailout in under four years.
Foxconn, formally known as Hon Hai Precision Industry, had already offered over 600 billion yen for Sharp but had stopped short of detailing a restructuring plan, people with knowledge of the matter had said last week, dampening enthusiasm for its proposal among Sharp advisers.
The company has now provided details to Sharp and its lenders, including a promise not to cut jobs, and Foxconn founder and chairman Terry Gou has also met government officials on Tuesday to discuss the offer, the person said, declining to be named as the information remains confidential.
"Hon Hai's offer is detailed. It's considerably realistic and can't be ignored," the source said. Another industry source familiar with the talks said Foxconn was "very, very intent and serious" about its offer. Sharp declined to comment. Executive at Foxconn were not immediately available to comment.
INCJ is willing to invest around 300 billion yen in the bailout, while banks are expected to offer up to 350 billion yen in financing, including 150 billion yen in a debt-for-equity swap, a source said late last week. Sharp's lenders, however, have been hoping a higher offer from Foxconn could prompt INCJ to raise its bid and help the banks recoup losses.
Sharp's main creditors are Mitsubishi UFJ Financial Group Inc's core unit Bank of Tokyo-Mitsubishi UFJ, and Mizuho Financial Group Inc's Mizuho Bank.