Foxconn puts Sharp takeover on hold over undisclosed liabilities

Taiwan's Foxconn has placed its takeover of eastern electronics maker Sharp Corp on hold after turning into privy to formerly undisclosed liabilities, two people with direct expertise of the matter informed Reuters on Thursday.

Loss-making Sharp said in advance in the day that it had agreed to be sold by means of Foxconn, a settlement manufacturing firm, in what would be the most important takeover by way of a overseas organization in Japan's insular generation zone.

but Foxconn stated hours later, in a separate declaration, that it'd no longer sign till it had clarified terms in a "new key document" from Sharp. It did not elaborate.

one of the resources, analyzing from information despatched by means of Sharp to Foxconn, said the japanese group had contingent liabilities that quantity to "hundreds of billions of yen". That remember could must be resolved earlier than a deal may be finalised, said the supply, who spoke at the condition of anonymity as the talks are confidential.

The source did not problematic on the character of the liabilities or the precise amount. Reuters has not visible a duplicate of the letter.