Sharp Corporation "What Happens Now?"

Bill Siderys posted:

Jason H posted:

Art, all I heard from our Ricoh, Canon, and Samsung reps were that when Sansung put a bid in for the copier business all the copier companies pleaded with the Japanese govt to not allow Samsung to buy them because it had the potential to put them out of business. I can't confirm it personally but canon and Ricoh people have told me that.

Samsung could try to grow the business one dealer at a time or buy the market share via another manufacture.  Samsung is creating a product line and will be a player...how might be the question but it will be soon.

 

Yes true, but they are losing dealers now because of their product line. I think they have to make a move for someones hardware. We have been a dealer for about 6 years now and have been through the really bad as well as the decent products. I know several dealers I have spoken with who are not selling the product anymore because of all the issues they have had with it. 

Jason H posted:

Art, all I heard from our Ricoh, Canon, and Samsung reps were that when Sansung put a bid in for the copier business all the copier companies pleaded with the Japanese govt to not allow Samsung to buy them because it had the potential to put them out of business. I can't confirm it personally but canon and Ricoh people have told me that.

Samsung could try to grow the business one dealer at a time or buy the market share via another manufacture.  Samsung is creating a product line and will be a player...how might be the question but it will be soon.

Czech posted:

Andy posted this today: http://industryanalysts.com/22...;utm_campaign=buffer

Looks like Foxconn is going to invest $450M into the Business Solutions Division worldwide. I don't think they plan on selling it, especially if it's one of their more profitable divisions.

I always was a car before I sell it.

I was just trying to find another thread about why Foxconn has taken a step back.  It seems that Sharp disclosed a much smaller amount on their 2015 fiscal report for contingent liability.  When foxconn received the updated contingent liabilities it was 20X times what was reported. I will try and find the link again.

But, I know what really happened, Sharp many months ago outsourced their accounting department to Toshiba!  har har, that's a joke!

This was posted on Forbes today.  Gou had put a 1 Billion yen or dollars thinking it was yen if he walks away.  He just may walk on this one.

Not so fast. After Sharp’s board agreed to accept Foxconn’s bid on Thursday, the acquirer stepped away. Foxconn, in a written statement, reportedly said it would delay completing the deal because it needed to study “new material information” released by Sharp.

That information includes an additional $3.1 billion in contingent liabilities not previously disclosed that Foxconn would assume from Sharp, according to The Wall Street Journal. What once seemed like a momentous deal, with a relatively nouveau riche Chinese technology giant acquiring one of Japan’s most storied brands, has now turned sour.

What would be funnier than to see SIICA spin on losing this deal and then Sharp taking the INCJ deal, which is very bad for the banks and share holders, plus INCJ just wants to spin stuff off, not a bad idea, but would just love to see the spin.

At this point in time, everything gets worse if Foxconn backs out.

Jason, that was a great chuckle hope others will click on the link!  Here is it for those that didn't go to the IA site.  This is the line on the IA site:

More precise detailed information can be reviewed on Sharp Corporation’s website. <by CLICKING HERE.>

That green area is hilarious. I tend to side with Art on this. That's propaganda to keep the dealers at bay for the time being hoping and praying they don't start jumping ship. I wouldn't have expected anything less. IA has never posted one thing negative about a manufacturer that I can remember. 

So, if you read the letter that IA got from SIICA today,  YOU need to click on the link, it's hilarious, make sure you read the very top line highlighted in green!!!!  LMAO

Czech posted:

Andy posted this today: http://industryanalysts.com/22...;utm_campaign=buffer

Looks like Foxconn is going to invest $450M into the Business Solutions Division worldwide. I don't think they plan on selling it, especially if it's one of their more profitable divisions.

Well what would you expect from IA, since Sharp is possibly of their accounts?  I knew there would be a positive spin for the dealers.  The entire deal is now in jeopardy with billions of debt that Sharp did not declare or forgot about.  $450 million world wide is not a lot of money, in addition there is no mention of how much for North America, sorry, but I from the camp that goes by, "believe nothing of what you hear and only half of what you see".

What Sharp posted today was pure propaganda to keep the dealer base at ease, and that's what I would expect from them.  Ever notice that IA never posts anything negative about any manufacturer, why is that?

Andy posted this today: http://industryanalysts.com/22...;utm_campaign=buffer

Looks like Foxconn is going to invest $450M into the Business Solutions Division worldwide. I don't think they plan on selling it, especially if it's one of their more profitable divisions.

SalesServiceGuy posted:

According to an Asian financial expert on CNBC this AM, the Foxconn deal is actually very destructive to Sharp shareholder value and not a good thing.

Foxconn will gain control of 2/3rds of Sharp.

Before the sale can be finalized and controlling shares transferred it has to get the approval of Japanese regulators who may not be keen to let let the first major Japanese Corporation fall into the hands of a non Japanese company.

I actually read the oppo last night. lol    They may not be keen to let Sharp go, however the INCJ plan eliminates the billions of debt that the Japanese banks are holding, the foxconn plan give Sharp the much need cash to pay that debt. 

According to an Asian financial expert on CNBC this AM, the Foxconn deal is actually very destructive to Sharp shareholder value and not a good thing.

Foxconn will gain control of 2/3rds of Sharp.

Before the sale can be finalized and controlling shares transferred it has to get the approval of Japanese regulators who may not be keen to let let the first major Japanese Corporation fall into the hands of a non Japanese company.

SalesServiceGuy posted:

Not so fast on the speculation!

Foxconn has put off signing the purchase agreement with Sharp based upon just revealed documents suggesting a contingent liability into the many billions of yen.

A contingent liability is a potential liability...it depends on a future event occurring or not occurring. For example, if a parent guarantees a daughter's first car loan, the parent has a contingent liability. If the daughter makes her car payments and pays off the loan, the parent will have no liability. If the daughter fails to make the payments, the parent will have a liability.

Sharp's stock dropped 15% this AM on heavy trading volumes.

 

 

 

 

 

 

 

 

I just read that also, see what happens when you doze off for 8 eight hours.  From what I've read, seems Gou is a lot like Trump.  I would not doubt if this is another attempt to lower the acquisition cost.  Was Sharp holding something back?  Who knows, although it's not surprising since Sharp is mired in so much debt.  I think the deal will be signed by the 29th and there maybe some renegotiating by both parties.  The Foxconn deal gives the share holder loot and the INCJ does not

Not so fast on the speculation!

Foxconn has put off signing the purchase agreement with Sharp based upon just revealed documents suggesting a contingent liability into the many billions of yen.

A contingent liability is a potential liability...it depends on a future event occurring or not occurring. For example, if a parent guarantees a daughter's first car loan, the parent has a contingent liability. If the daughter makes her car payments and pays off the loan, the parent will have no liability. If the daughter fails to make the payments, the parent will have a liability.

Sharp's stock dropped 15% this AM on heavy trading volumes.

I also cannot wait to hear what kind of spin SIICA puts on it in the coming days. My guess is damage control because I have said in posts I feel like how many hits can your ship take before it sinks....I think they are getting close to that last hit....I can only imagine how they will sell this news to their dealers and customers.

Art, all I heard from our Ricoh, Canon, and Samsung reps were that when Sansung put a bid in for the copier business all the copier companies pleaded with the Japanese govt to not allow Samsung to buy them because it had the potential to put them out of business. I can't confirm it personally but canon and Ricoh people have told me that.

Can't wait to hear the spin from Sharp here in the US tomorrow. 

The Japanese government stopped it before...No longer a Japanese company!!!...Open to the highest bidder!!!

Jason

 "I know Samsung has more money than god but will the govt allow it to happen?" what government are referring to?

My gut tells me the imaging business will be sold off to someone soon. I know Samsung has more money than god but will the govt allow it to happen? Canon, Ricoh, Kyocera, and KM cried when that was possible a while back and it was blocked by the Japanese govt. I hate to say it but if your a SAMSUNG dealer like I am, I'm licking my chops to see what happens. Sharp bought the biggest independent dealer in our market about 6 or 7 years ago and ran it in the ground so I will have no problem seeing the direct branch sold off again like the local company was then. It could be a great opportunity for us of that branch is sold off for penny's on the dollar like years before. 

everyone jumped on the bandwagon on print is dead, OMG we need to do something!  OMG the sky is falling!! Print is not dead, print is migrating, we just need to follow it.

Samsung should buy Xerox and get rid of the freeloader Ursula Burns!!! I know of very few if any companies that reward a CEO for making a company worse off now than when they took over!!!