This week I told you that Foxconn's proposal for the acquisition of the majority stake in the Sharp company to have been approved by the board of directors of the Japanese, but today we learn that the Taiwanese might give up buying Sharp.
In the middle of this confusion are the debts of 1.3 billion dollars that Sharp has at the moment, but separately from these there is the possibility that the Japanese government will collect additional taxes from the company, and in the end there is also a lost lawsuit that imposed the payment of damages from Sharp.
Although those from Sharp stated that all these problems were reported to Foxconn, the Taiwanese claim the opposite, and now they seem quite determined to give up the purchase of the Sharp company in order not to pay much more money than it is worth in the end.
Considering the fact that only Sharp's debts represent a quarter of the amount that Foxconn was willing to pay for the purchase of the company, it remains to be seen under what conditions an agreement could be concluded to take over the majority of the shares.
Sharp Corp on Friday scrambled to salvage a sale to Taiwanese electronics assembler Foxconn as its stock plunged and investors questioned whether the companies could restore trust to make their proposed marriage work after an 11th-hour breakdown in talks … According to a person familiar with the matter , Foxconn chairman Terry Gou received a list of liabilities in an email from Sharp on Wednesday morning, during a meeting at Foxconn headquarters in Taipei. Dozens of people were in the room and they "went berserk," this person said.
