Hon Hai Precision Industry Co.¡¯s delay in finalizing a takeover agreement for Sharp Corp. is raising risks that the deal the Taiwanese company has pursued for months will fall apart before it¡¯s completed.
It has been 25 days since Sharp¡¯s board voted in favor of a bailout proposal from Hon Hai, also known as Foxconn Technology Group, over a competing offer from Innovation Network Corp. of Japan. Hon Hai¡¯s bid totaled more than ?600 billion ($5.4 billion), including ?489 billion to acquire new shares in Sharp and ?100 billion to acquire preferred stock from the company¡¯s main banks.
Since that time, Hon Hai Chairman Terry Gou has held off in signing a final agreement with Sharp as his advisers examine the company¡¯s finances. Hon Hai has sought to reduce the amount it is supposed to pay Sharp¡¯s banks and wants more clarity on Sharp¡¯s performance in the current quarter, people familiar with the matter have said.
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