Sharp, Foxconn deal seems increasingly unlikely -- report
The companies are likely to suspend their negotiations on March 26 and end them without an agreement, according to a new report.
Sharp and Foxconn Technology Group likely won't arrive at a deal by the time their negotiations are scheduled to end in March, a new report claims.
The companies have been in talks for months for Foxconn to acquire a stake in Sharp, but they haven't been able to come to terms. Citing people who claim to have knowledge of the companies' negotiation, Bloomberg is reporting today that they can't come to agreement on the share price Foxconn would pay to acquire a piece of Sharp. The companies are also unwilling to agree on corporate control and overarching strategy.
Nearly a year ago, Foxconn and Sharp agreed to a deal that would have seen the iPhone maker buy a 9.9 percent stake in Sharp. However, Sharp's business started to falter and its stock price plummeted, prompting Foxconn to rethink how much it would pay. Since then, the companies haven't been able to come to an agreement. And according to Bloomberg's sources, they won't.
Sharp is in the process of trying to revamp its operation. However, after announcing a 16 percent sales drop during the six months ended September 30 and a net loss that widened considerably compared to the prior year, it expressed doubt that it could continue on.
"Sharp is in circumstance in which material doubt about its assumed going concern is found,", essentially telling investors that it doesn't know how much time is left.
CNET has contacted both Sharp and Foxconn for comment on the Bloomberg report. We will update this story when we have more information.