Sharp Decides To Accept Hon Hai's 660 Bil. Yen Takeover Bid

Sharp decides to accept Hon Hai's 660 bil. yen takeover bidSharp Corp. decided Thursday to accept a roughly 660 billion yen ($5.9 billion) takeover bid by Taiwan's Hon Hai Precision Industry Co. that will make it the first major Japanese electronics maker to come under foreign ownership, sources familiar with the matter said Thursday.

The decision marks a victory for Hon Hai, which had been in competition with the state-backed Innovation Network Corporation of Japan to win over Sharp's board members and rescue the company hit by losses in its liquid crystal display business.

Hon Hai's offer will be the largest acquisition of a Japanese electronics maker by a foreign company. The rescue measures involve Hon Hai, which goes by the trade name Foxconn, accepting Sharp's capital raise and also purchasing the company's preferred shares held by its creditor banks.