Sharp Corporation says Foxconn to still push for acquiring Toshiba

Due to cost overruns at the Westinghouse nuclear unit, the company wants to get out of the negative shareholders' equity.

Taiwan's Foxconn will continue to pursue an acquisition of Toshiba Corp's chip business, a day after the troubled conglomerate chose a rival suitor as the preferred bidder, the head of Foxconn's Japanese unit said.

"We will continue our efforts," Sharp Corp CEO Tai Jeng-wu told reporters on the sidelines of Foxconn's annual shareholders' meeting. "We will use our track record, our efforts at Sharp, Foxconn's global reach - we are a global company, not a Taiwan company," Tai said. Foxconn is formally known as Hon Hai Precision Industry Co.

According to previous reports by Reuters, the Japanese government and the Bain Capital have come together to bid for the chip business which could see a possible delisting if it does not recover its losses. The Bain and Japanese government partnership have offered to pay two trillion yen which is close to $18 billion. This statement came from a Toshiba spokesman to Reuters

Toshiba seems to be in a hurry to complete the deal. Due to cost overruns at the Westinghouse nuclear unit, the company wants to get out of the negative shareholders' equity. Along with the Bain group, the Innovation Network Corp of Japan and the Development Bank of Japan are also a part of the partnership. Also the chipmaking company from South Korea, SK Hynix Inc are in talks to provide financing.

Reuters

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