Taiwan’s Hon Hai Precision Industry Co. may delay until next week the signing of a deal to acquire struggling Japanese electronics maker Sharp Corp., due to ongoing talks with Sharp’s two main creditor banks over the firm’s potential future losses, it was learned Tuesday.
In the wake of the recent revelation of Sharp’s contingent liabilities totaling about ¥350 billion, Hon Hai, also known as Foxconn Technology Group, is discussing a possible review of support for Sharp with the two banks — Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ, sources said.
The major Taiwanese contract electronics manufacturer is asking the banks for a certain level of support to help to prepare for possible future losses from the contingent liabilities, the sources said. read the rest here