Japanese officials have expressed concern about letting Sharp come under foreign control due the company’s key technology in display panels. Innovation Network already owns a controlling stake in Japan Display, another major display maker. Foxconn is offering more money for Sharp and a willingness to shoulder all of its debt, people familiar with the offer said. Those conditions are meant to persuade Sharp’s creditors to make a decision based on the economics of the deal, rather than political considerations, according to the report.
Sharp must repay in March JPY 510 billion in borrowings, according to Standard & Poor’s. Sharp has said its main creditors are banking units of Mitsubishi UFJ Financial Group and Mizuho Financial Group. Sharp owes the two banks together around JPY 500-600 billion, people familiar with the matter said. According to the paper's sources, Sharp and its lenders hope to reach a decision by 04 February, when Sharp is scheduled to announce its latest quarterly results.
