Sharp shares rise amid hopes for further restructuring
Published: 17th Aug 2012 13:35:59
Shares in Japan's Sharp have risen amid speculation Taiwan's Hon Hai may double its stake in the ailing firm.
Hon Hai Precision Industry, which owns Foxconn, is looking to raise its stake to about 20% of Sharp, Japan's Nikkei daily reported.
But the Taiwanese firm is now offering 200 yen ($2.52; £1.60) a share, down from 550 yen agreed in March, it said.
Sharp's stock climbed 13% as hopes of a turnaround grew. It later settled down and was up 5% to 184 yen at the close.
Shares in the electronics giant have fluctuated wildly in recent months as Sharp tries to revive its business.
The century-old company, whose founder invented the first mechanical pencil and designed one of the first radio sets in Japan, has in recent years fallen behind nimbler rivals, such as South Korea's Samsung.
Since the beginning of the year, Sharp has lost about $7bn in market value.
Japanese media this week reported Sharp was potentially planning to sell off assets, including a key solar panel plant in Sakai in western Japan for $1.2bn.
Sharp is also considering selling its LED, copier and air-conditioner businesses, reports said.
Television assembly plants in Poland, Malaysia, Mexico and some office buildings in Tokyo may also be thrown into the sale bonanza.
"It is true that we are considering a number of options, and we will announce these when a decision has been made," Sharp spokeswoman Miyuki Nakayama said.
Sharp recently announced it would cut 5,000 jobs to reduce costs.
It is in talks with Hon Hai for a planned tie-up in liquid crystal display (LCD) production.
Hon Hai earlier this year agreed to buy a tenth of Sharp for $844m, or 550 yen a share. But the two firms are now re-negotiating the deal following Sharp's falling share price.
With a debt pile worth 1.25trn yen, Sharp is under pressure by its creditors to streamline its business in order to convince its investors.
The company, which makes screens for Apple's iPad and iPhone, needs to shore up cash to roll over as much as 360bn yen of short-term commercial paper and will need another 200bn yen to cover a maturing convertible bond in September 2013.
At 17:02:44 in EnglandTwelve new victims have made allegations of child sexual abuse in Rotherham since a report found at least 1,400 children were abused, police say.
At 17:02:03 in ScotlandPolice have appealed for help in tracing a woman and three children from the Pollok area of Glasgow who have been missing for the past week.
At 16:59:50 in HeadlinesFour UN peacekeepers have been killed and 15 injured by a landmine in northern Mali.
At 16:52:29 in HealthA global military intervention is needed to curb the largest ever Ebola outbreak, according to the medical charity Medecins Sans Frontieres.
At 16:50:46 in Northern IrelandA 20-year plan has been proposed to improve education in the area with the worst attainment record in Belfast.
At 16:50:13 in EnglandA man has been found guilty of bombarding a Labour MP with abusive messages on Twitter after she supported a feminist campaign.
At 16:46:49 in EnglandA major road improvement scheme has been delayed by more than a month because damage is worse than previously thought.
At 16:45:30 in SportIndia sent England to a humiliating nine-wicket defeat to win the fourth one-day international at Edgbaston and the five-match series 3-0.
At 16:44:45 in ScotlandEdinburgh City Council is examining ways to make a church bell quieter after learning it exceeds World Health Organisation night-time noise limits.
At 16:34:32 in Northern IrelandA court has ordered Irish police to apprehend a 16-year-old boy who had absconded from hospital.
Harvard CitationBBC News, 2012. Sharp shares rise amid hopes for further restructuring [Online] (Updated 17th Aug 2012)
Available at: http://www.ukwirednews.com/news/1446827/Sharp-shares-rise-amid-hopes-for-further-restructuring [Accessed 2nd Sep 2014]
News In Other Categories
US oilfield services firm Halliburton says it has reached a $1.1bn (£660m) settlement to meet the majority of claims against it for its role in the 2010 Gulf of Mexico oil spill.
South Yorkshire Chief Constable David Crompton is appearing before a MPs to answer questions about a search of Sir Cliff Richard's house.
Twelve new victims have made allegations of child sexual abuse in Rotherham since a report found at least 1,400 children were abused, police say.
Police have appealed for help in tracing a woman and three children from the Pollok area of Glasgow who have been missing for the past week.
India sent England to a humiliating nine-wicket defeat to win the fourth one-day international at Edgbaston and the five-match series 3-0.
A diver who died following an incident at a disused Gwynedd quarry has been named.