WSJ breaks news that Taiwanese electronics manufacturing giant Foxconn has offered 625 billion yen (around $5.35 billion) to take over troubled Japanese display and electronics maker Sharp.
Sharp is currently evaluating a 300 billion yen offer from Innovation Network Corp. of Japan (INCJ), a government-backed investment fund. Foxconn's bid is significantly higher but Japanese officials are concerned about letting Sharp come under foreign control. According to people familiar with the matter, Foxconn has offered to leave Sharp's to management in tact, as a measure to appease Japanese authorities about a foreign takeover.
“Japan’s technology is leading the rest of the world and we would like to help make it even more competitive,” industry minister Motoo Hayashi said this week.
Although INCJ is the preferred buyer among Tokyo officials because it would keep Sharp under Japanese control, Foxconn, formally known as Hon Hai Precision Industry Co., is offering more money for Sharp and a willingness to shoulder all of its debt, people familiar with the offer said.