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Sharp advises renegotiation on Hon Hai's buying price

2012/08/05 18:09:03

Taipei, Aug. 5 (CNA) The chairman of Taiwan's Hon Hai Precision Industry Co. said Sunday that Japan's Sharp Corp. has advised renegotiation on the price of a stake that Hon Hai has agreed to acquire in the Japanese firm.

Terry Gou said Sharp's former and incumbent chairmen told him at a meeting in Japan Friday that Hon Hai can renegotiate the buying price because Sharp reported disappointing results in the April-to-June quarter, leading to a slump in its share prices.

Speaking during a TV interview, Gou said that the renegotiation might take place by March next year, but added that the actual timetable has yet to be decided.

Hon Hai, the flagship company of the group, and three of its affiliates -- Foxconn Technology Co. Ltd., Foxconn (Far East) Ltd. and Q-Run Holdings Ltd. -- struck a deal with Sharp in March to acquire a 9.871 percent stake for about US$800 million, or 550 Japanese yen per share.

However, amid rising concerns over the Japanese electronics giant's bottom line, Sharp's shares fell sharply recently on the Tokyo Stock Exchange, even shedding more than 28 percent in a single session Friday to below 200 yen.

(By Jeffrey Wu)