Boston, MA 02\/25\/2013 (wallstreetpr) – Sharp Corporation (TYO:6753)\u2019s business talks over a possible investment from the Taiwanese Foxconn Technology Group in most probability will come to a close at a dead end on March 26. With a sharp decline in the Sharp Corporation (TYO:6753) shares, the companies have been unable to seal a deal. Unconfirmed reports have it that inadequate company strategy and inefficient management control have been added hurdles in the talks between the two companies. Sharp Corporation (TYO:6753) is forecasting full-year losses to the tune of $4.8 billion primarily due to the reduced demand in its TV and panel segments. Terry Gou the billionaire founder of Foxconn had initially agreed to buy out a 9.9 percent stake in Sharp Corporation (TYO:6753) at 550 yen per share.<\/p>\n
Rumors of suspension of talks<\/b><\/p>\n
The plunging Sharp rates over the past seven consecutive months had Foxconn stating that the price would have to be re-negotiated. Various Japanese newspapers reported different news without revealing where they had received the information from. The Mainichi paper had reported that the talks would be suspended. The Sankei paper said that Sharp Corporation (TYO:6753) is considering various measures such as announcing a public share sale in a bid to raise its capital to at least 200 billion yen. Again, no names were cited and no sources revealed.<\/p>\n
On a selling spree<\/b><\/p>\n
This is not Sharp Corporation (TYO:6753)\u2019s first interaction with Gou. The TV maker had sold part of its Sakai LCD factory stake to Foxconn in July, last year. Sharp is also trying to seal sales deals with other companies and there is a possibility of a deal being included in its medium-term business plan and any formal announcements with regards to the same will be made sometime next month. Sharp Corporation (TYO:6753) has already sold a 4.9 billion yen stake to the San Diego, California-based, U.S Chipmaker QUALCOMM, Inc (NASDAQ:QCOM). This is the first of a planned two-step transaction valued at 9.9 billion yen.<\/p>\n
Stringent cost-cutting measures<\/strong><\/p>\n In a concerted cost-cutting effort, Sharp Corporation (TYO:6753) sold assets, down-sized its workforce and also took the step of mortgaging its headquarters in order to refinance its debts. The company had posted a net loss of 376 billion yen in the financial year that ended on March 31. The bleed of 103 billion yen worth of cash from its operations over the six months that ended in September had seen the company expressing doubts about its capability to survive in the market. There is news of Sharp Corporation (TYO:6753) convertible bonds amounting to 200 billion yen maturing this year.<\/p>\n Sales of Sharp Corporation (TYO:6753) went down by 5.16% to close at $294.00<\/p>\n Sales of QUALCOMM, Inc (NASDAQ:QCOM) went up by 0.19% to close at $64.94<\/p>\n","protected":false},"excerpt":{"rendered":" Boston, MA 02\/25\/2013 (wallstreetpr) – Sharp Corporation (TYO:6753)\u2019s business talks over a possible investment from the Taiwanese Foxconn Technology Group in most probability will come […]<\/p>\n","protected":false},"author":2,"featured_media":5662,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[265],"tags":[674,1767,1766,1496],"stock_ticker":[],"class_list":["post-5661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international","tag-nasdaqqcom","tag-qualcomm-inc-nasdaqqcom","tag-sharp-corporation-tyo6753","tag-tyo6753","entry"],"acf":[],"yoast_head":"\n