Foxconn wins control of Sharp with reduced $3.5 billion offer

"Foxconn Technology Group Chairman Terry Gou finally clinched a deal to buy Sharp Corp. after years of pursuit, bringing together the main assembler of Apple’s iPhones with the electronics maker that built Japan’s first television sets.

The parent of Hon Hai Precision Industry Co. is paying $3.5 billion (389 billion yen) for a controlling stake in Sharp, a drop of 100 billion yen from an agreement forged a month ago. As a result, Foxconn and its affiliates will get 66 percent of the Japanese company for 88 yen per share, both companies said in statements on Wednesday.

“Finally, it’s decided,” said Hideki Yasuda, an analyst at Ace Research Institute in Tokyo. “This is positive for Sharp, although it’s hard to imagine that Foxconn won’t have to keep providing funds.”

The deal’s consummation caps weeks of drama, when the acquisition repeatedly looked like it could fall apart. Gou had appeared on the verge of grasping his prize a month ago, when Sharp’s board chose Foxconn over a rival bid from the state-backed Innovation Network Corp. of Japan. But after learning about liabilities at Sharp, Gou pushed back the final agreement to negotiate a lower price..."