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Taiwan’s Foxconn is lowering an offer for loss-making Japanese electronics maker Sharp Corp from an initial plan of 489 billion yen ($4.4 billion), the Yomiuri newspaper reported on Sunday.

The reason behind the move is that Foxconn appears to be concerned about financial risks of potential liabilities at Sharp and its business outlook, according to Yomiuri. The newspaper did not say how much Foxconn, formally known as Hon Hai Precision Industry, will lower the offer to.

A Sharp spokesman declined to comment on the report.

Sharp late last month said it would issue around $4.4 billion worth of new shares to give Foxconn a two-thirds stake in a deal the Taiwanese company backed out of at the last minute. Foxconn’s total investment was set to total nearly $6 billion, according to a source.  read the rest here

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I mentioned this three weeks ago when I saw the draw back from Foxconn.  Sharp has no other alternative move but to accept whatever offer comes it's way.  Huge loans are due April 1st to the Japanese banks.  Wonder if Gou will stay with the same monetary commitment and get all of Sharp or lower the amount and stay with the same percentage from the original deal.

If the offer is less, than Sharp will have to re work it's comeback plan, and I'm sure that comeback plan will affect many of the business units other than display business unit.

Stay tuned this deal is not over yet, egads what happens if Sharp defaults on the loans?

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