The West

Sharp to keep Foxconn  investment below 10pc
Sharp to keep Foxconn investment below 10pc

Sharp Corporation will keep its Taiwanese partner's stake in the firm below 10 per cent, after a huge share price drop at the Japanese electronics giant threw the deal into doubt.

Sharp's president Takashi Okuda as saying that an earlier agreed deal to sell almost 10 per cent of the firm to Taiwan's Hon Hai Precision will remain in place.

"I don't intend to change the 9.9 per cent stake in our shares," Mr Okuda said.

Earlier reports had said the $US800 million ($A770.68 million) investment would be renegotiated after Sharp shares tumbled to four-decade lows this month on dire financial results, with Hon Hai to get as much as 20 per cent of the struggling Japanese firm, which makes a range of products including Aquos-brand televisions.

But a spokesman for Hon Hai, better known as Foxconn, which assembles Apple products in China including the iPad and iPhone, said the deal's 550 yen per share purchase price might still change.

Sharp shares, which dropped as low as 164 yen this month, traded 3.12 per cent higher at 198 yen in afternoon trade today.

"Without changing the investment ratio of 9.9 per cent, we will review the purchasing price per share," the Hon Hai spokesman said.

The drop was sparked by the company saying it had lost about $US1.76 billion in the April-June quarter while warning of a bigger-than-expected full-year loss.

Sharp's tie-up with Hon Hai was part of a corporate overhaul that could see as many as 8,000 job cuts, or about 15 per cent of Sharp's global workforce.

Mr Okuda said about 5000 jobs would be cut through early retirements, with another 3,500 job reductions tied to a possible sale of Sharp's television assembly plants in China and Mexico to Hon Hai.

Sharp, which has seen its mainstay television, LCD and solar panel products struggle, said the job reductions were part of a bid to cut annual fixed costs by Y100 billion ($A1.22 billion) to shore up its dented balance sheet.

The West Australian

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