August 22, 2015 / 7:50 AM / 3 years ago

Japan's Sharp in talks with Hon Hai on tie-up: Asahi

TOKYO (Reuters) - Japanese electronics maker Sharp Corp has entered negotiations with Taiwan’s Hon Hai Precision Industry Co for a tie-up over Sharp’s struggling display business, the Asahi newspaper reported on Saturday.

A man sitting on a sofa looks at a Sharp Corp's Aquos TV at an electronics retailer in Tokyo, Japan, June 23, 2015. REUTERS/Yuya Shino

Investors and analysts have urged Sharp to overhaul its liquid crystal display (LCD) and consumer electronics divisions. Chief Executive Kozo Takahashi initially resisted but last month said he was open to major restructuring, including some kind of strategic deal for its LCD business.

Sharp could consider accepting capital from the world’s largest contract electronics manufacturer, Hon Hai, in the display business after the business was spun off from Sharp, or selling Sharp’s stake in their joint-venture TV panel plant in Sakai, Japan, the report said, citing unnamed sources.

But Sharp was also seen as considering a Japan government-backed fund for support, and the situation was fluid, it added.

Asked about the report, a Sharp spokesman told Reuters, “We are considering various things regarding the reform of display business, but we decline to comment on an individual firm.”

Reporting by Reiji Murai; Writing by Osamu Tsukimori; Editing by Clarence Fernandez

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