Report: Foxconn Eyes $5.3 Billion Acquisition Of Sharp

According to The Wall Street Journal, Foxconn offered $5.3 billion (or ¥625 billion) to acquire Sharp. Taiwan-based Foxconn is best known for being a major assembler of iPhone devices. Meanwhile, Japan-based Sharp has been bailed out several times by various financial institutions over the past few years as the company's products have lost ground to competing Asian firms. The Wall Street Journal noted that Foxconn's Chairman, Terry Gou, personally acquired a 38 percent stake in a Sharp display factory in 2012. At that time, Foxconn was to acquire a 10 percent stake in Sharp, but the deal fell apart. The publication, citing "people familiar with the companies," stated that Sharp's display and manufacturing expertise is "attractive" to Foxconn. An acquisition would also provide Foxconn with the ability to sell its own branded products directly to consumers. Sharp is also said to be considering a ¥300 billion offer from Innovation Network Corp. of Japan, a government financed investment fund. Japanese officials have expressed concerns over a scenario in which Sharp comes under foreign control. The government backed fund is the preferred buyer among Tokyo officials despite Foxconn's superior offer, The Wall Street Journal added.