Taiwan’s Foxconn put its takeover of electronics maker Sharp Corp. on hold on Thursday after discovering previously undisclosed liabilities, sources said, throwing into doubt what was set to be the biggest takeover by a foreign firm in Japan’s technology sector.
Loss-making Sharp announced earlier in the day that it had agreed to be bought by Foxconn, a contract manufacturing firm that is a major Apple Inc supplier.
But, in a separate statement issued just hours later, Foxconn said it would not sign until it had clarified terms in a “new key document” from Sharp. It did not elaborate.
Two sources with direct knowledge of the matter said the Japanese group had contingent liabilities that amounted to “hundreds of billions of yen”.
That issue would have to be resolved before a deal could be finalised, said the sources, who spoke on condition of anonymity as the talks are confidential. Read more