Hon Hai & Sharp to cease talks March 26: Japan daily


CNA

TOKYO–Taiwan’s Hon Hai Group and Japan’s Sharp Corp. will cease their yearlong talks on capital cooperation in the coming few days, the Japanese daily Sankei Shimbun reported Saturday.

The talks will be stopped March 26 because the two parties cannot come to terms on the proposed partnership deal, the business daily said.

The two sides previously set March 26 as the dateline for partnership talks, according to Sankei Shimbun.

Hon Hai, the world’s largest electronic manufacturing service provider, and cash-strapped Sharp tentatively reached an agreement in March 2012 for the Taiwanese firm to acquire a nearly 10-percent stake in Sharp for 550 yen per share.

But, both sides have entered renegotiations on the terms since last August, including the acquisition price. This was after the Japanese firm’s share prices fell sharply, amid concerns over its bottom line.