Companies have been in talks for months Foxconn to acquire a stake in Sharp, but they were not able to reach an agreement. Citing people who claim to have knowledge of the trading companies, Bloomberg reported today that they can not agree on the price action Foxconn would have to pay to acquire a piece of Sharp. Companies are also reluctant to agree on corporate control and corporate strategy.
Almost a year earlier, Foxconn and Sharp have agreed to a deal that would have seen the iPhone manufacturer to buy a stake of 9.9 percent in Sharp. However, the activity of Sharp began to weaken and its stock price has fallen, prompting Foxconn to rethink how they pay. Since then, companies have not been able to reach an agreement. And according to Bloomberg sources, they will not. Sharp is trying to reorganize its operations. However, after announcing a 16 percent decline in sales during the six months ended September 30 and a net loss widened considerably compared to the previous year, he doubted he could continue .
"Sharp is the circumstance in which the material doubt as to its supposed continuity is found," the company said in a statement in November, essentially told investors he does not know how much time is left.
CNET has contacted both Sharp and Foxconn to comment on the Bloomberg report. We will update this story when we have more information.
