|
Despite a $1.7 billion rescue in May, its second major package
in three years, persistent losses have meant Sharp is struggling
to make the investments it needs to keep its screen business
competitive.
Its main lenders want the company to find a buyer for all or
part of its ailing LCD business within months, sources familiar
with the matter have said.
"I cannot provide any names, but we are currently in
negotiations with multiple companies," Chief Executive Kozo
Takahashi told an earnings briefing, adding that he could not
say when any deal would be finalised.
Takahashi stressed that a direct investment into Sharp itself
was not being discussed.
Taiwan's Hon Hai Precision Industry Co <2317.TW> has been
interested in buying all or part of the LCD unit, while a
state-backed fund is also considering a direct investment in
Sharp or merging the company's LCD unit with rival Japan Display
Inc <6740.T>, sources have said.
Sharp's July-September operating profit tumbled 86 percent to
3.5 billion yen ($29 million) from a year earlier, dragged down
by falling prices of smartphone displays and slow progress in
reducing inventory.
The result had been flagged earlier this week.
The LCD division booked an operating loss of 12.7 billion yen in
the quarter. It was forecast to post an annual loss of 30
billion yen compared with an initial estimate of a 45 billion
yen profit.
($1 = 120.9500 yen)
(Reporting by Makiko Yamazaki; Editing by Edwina Gibbs)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
|
