Report: Foxconn Named Preferred Bidder By Sharp

Foxconn has prevailed in its hopeful bid to buy Japanese company Sharp, according to a new report. We heard rumbles about such plans in late January, and now sources have surfaced claiming Sharp Corporation has selected Foxconn of Taiwan as the preferred bidder. If the sources are correct, Foxconn is willing to fork out the Yen equivalent of $5.9 billion for Sharp, which has struggled to compete in a market dominated by bigger players.

The information comes from Reuters, which says it received word from unnamed sources. Sharp's CEO Kozo Takahashi has himself stated the company is talking with Foxconn about the matter, but he didn't state whether Sharp has chosen Foxconn as its preferred bidder, as the sources state.

A state-backed collective called the Innovation Network Corp of Japan (INCJ) had sought to buy Sharp instead, but reportedly had bid less than half of what Foxconn is tipped to have offered. The alleged bid amount aside, Sharp and Foxconn have a relationship that could give the Taiwan company preference regardless. According Takahashi, they have jointly managed a Japanese plant, resulting in good blood between the two companies.

Foxconn, of course, assembles electronics for a variety of companies, not the least of which is Apple. Sources say Foxconn's chief executive has flown to Japan in a bid to wrap up negotiations promptly. If one source is right, Foxconn is pining for a resolution by the end of this month.

SOURCE: Reuters