Hon Hai's Gou says talks on investment in Sharp still on: paper

Reuters News

12/5/2012 5:11:39 AM - Reuters News

TAIPEI (Reuters) - Qualcomm's tie-up with Sharp Corp will not affect Hon Hai Precision's talks with the Japanese firm to become its biggest shareholder and the deadline to reach a decision by next March still stands, a Taiwan newspaper reported on Wednesday, quoting Hon Hai's chairman.

Terry Gou, chairman of Hon Hai Precision Industry, a major supplier of parts to Apple Inc, was mentioned by the United Evening News as saying the Taiwan firm's talks to get an up to 9.9 percent stake will not change even though the cash injection from Qualcomm will give the U.S. chipmaker a 5 percent stake in Sharp.

Gou reiterated that he expects to reach a decision with Sharp before March 2013, the Chinese-language newspaper reported.

Sharp's talks with Hon Hai to renegotiate its investment have stalled in the past few months as the Japanese company's losses have mounted.

A Hon Hai executive, when contacted by Reuters on Wednesday, said that the talks are still on and the price Hon Hai will pay Sharp was yet to be agreed on by both companies.

(Reporting by Faith Hung; Editing by Muralikumar Anantharaman)