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Foxconn to take over Sharp for reduced price

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By Euronews  with Reuters
Foxconn to take over Sharp for reduced price

Taiwan’s Foxconn has announced an agreement to acquire the struggling Japanese technology firm Sharp.

The purchase price – the equivalent of just over three billion euros for a two thirds stake – is much less than its original offer. The iPhone maker said it will buy Sharp’s shares at 88 yen per share, a 35 percent discount to their close on Wednesday.

The two companies had been on the verge of finalising a deal last month but Foxconn postponed at the last minute after discovering previously undisclosed liabilities at Sharp.

The wrangling that followed has created additional doubts on how well they will work together.

Analysts predict a difficult path for the combined firm in making a profit from screens for smartphones and other devices.

It will face price pressure in LCDs ( liquid crystal displays) and will struggle to beat rivals in OLED (organic light-emitting diode), a new screen technology which Apple is expected to adopt for its iPhones by 2018.