Foxconn has requested the suspension of any transactions involving its shares available for sale or purchase on global stock exchanges, with the Taiwanese preparing to make an important announcement tomorrow.
Although nothing is officially known, journalists are of the opinion that Foxconn will announce the acquisition plans of the Sharp company tomorrow, and considering the problems that the Japanese have, the precautionary measure taken by Foxconn is a perfectly normal one.
It is speculated that Foxconn will ultimately offer $2 billion less than the original $6.2 billion to buy Sharp because of the company's financial problems and heavy debt, and the boards of directors of both companies should to approve the plans tomorrow.
If the acquisition plans are approved, then Foxconn will own one of the largest producers of screens for electronic devices, the Sharp company having divisions that produce televisions, household appliances and many, many others.
By acquiring Sharp, Foxconn will have a much stronger position in the future negotiations it will have with Apple for the supply of components dedicated to iDevices and for their assembly, but it remains to be seen what will be announced tomorrow.
Japan's Sharp Corp and Taiwan's Foxconn are set to sign a merger deal this week after repeated delays, with the two sides set to agree on a smaller bailout than originally planned for the troubled Japanese electronics maker, two sources familiar with the talks said.
