Foxconn’s Sharp deal might be in danger over ‘new key document’

Foxconn Delays Sharp Buy

Taiwan’s Foxconn just put the brakes on its acquisition of Sharp.

The company announced on Thursday that it had found a “new key document” that shines light on some previously undisclosed liabilities at the company.

Sharp announced earlier in the day that it had agreed to be bought by Foxconn, a key manufacturer of Apple devices.

Shortly after that announcement Foxconn said it would not sign the deal until the newly discovered document was closely examined.

Sources close to the deal say Sharp has contingent liabilities that amounted to “hundreds of billions of yen”.

It’s not clear at this time what the nature of the liabilities are at Sharp.

Foxconn and Sharp are declining to comment on the key document at this time.

The loss-making display maker said earlier in the day that it would issue around $4.4 billion worth of new shares to give Foxconn a two-thirds stake. Foxconn’s investment is expected to equal around 650 billion yen ($5.8 billion).

Foxconn shares are up nearly 3%.

Foxconn Shares

The deal would allow Foxconn to take over an even larger piece of Apple Inc’s business, while setting itself up to mass-produce organic light-emitting diode (OLED) screens by 2018 — just in time for Apple’s expected adoption of the display type.

Written by Franklin Simmons

Franklin Simmons

Franklin Simmons is BusinessPundit's Tech Editor. His life is consumed with a love of augmented reality, mobility, and emerging technology. He extensively covers all areas of technology, including the computing, automotive, and healthcare sectors.