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Reply to "Sharp has Serious Money Problems!"

Sharp Corp. 6753.TO +12.63% shares are soaring Friday on news that Japanese banks could be coming to the struggling electronics giant’s rescue, and as the yen hits a multi-year low.

Following an impressive rally in December, Sharp rose as much as 12% on Friday morning in Tokyo after a local media report said the company returned to an operating profit in the October to December quarter. Sharp denied the report.

The Nikkei was up more than 1%, hitting a 22 month-high.

Another Japanese media report said Mizuho Corporate Bank and the Bank of Tokyo-Mitsubishi UFJ, the two main creditors of Sharp, are considering providing up to Y200 billion worth of loans in September, as the company is expected to return to the black on an operating basis in the second half of this fiscal year because of the weakening yen. Sharp needs to redeem Y200 billion in convertible bonds in September.

The dollar hit its highest level against the yen on Friday since June 2010 on Friday, after Japan reported a much wider-than-expected current account deficit, and the government approved a Y10.3 billion trillion economic stimulus package.
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