The bidding war for Sharp continues, as Japanese government-backed Innovation Network Corporation has yet to announce a promised bailout plan, and its main rival Foxconn raises its bid while promising not to cut Japanese jobs.
Innovation — a fund backed by the Japanese government — was expected to come up with a bailout plan on Friday, according to Reuters, but executive director Tetsuya Hamabe told reporters that “no formal decision” had been made after a meeting of the fund’s upper echelons. Sources told Reuters that the group has been considering injecting over 300 billion yen ($1.7 billion) into Sharp, which would be paired with another 350 billion yen ($2.9 billion) in assistance from the company’s two principal lenders.
Earlier this week, Sharp was said to be leaning toward the Innovation offer, despite it being the lower of the two offers. However, Foxconn has reportedly taken steps to sweeten its bid for Sharp, raising its bid from 625 billion yen (about $5.2 billion) to 659 billion ($5.4 billion). The company’s promise not to cut Japanese jobs is seen as an effort to appease Japanese government and industry leaders who fear a foreign takeover may lead to a loss of jobs in the country.
Sharp is a major partner of Apple, providing displays for the company, along with LG and Samsung. Sharp was the first to build LCD panels using IGZO (indium gallium zinc oxide) technology back in 2012.