Foxconn wants to take the Sharp end

sharp2Foxconn Chief Executive Terry “The Zookeeper” Gou is in Osaka to meet executives of Japan’s Sharp.

The move comes a day after Sharp said it was focusing on the Taiwan firm’s takeover bid over a rival offer from a Japanese state-backed fund.

Foxconn wants to invest $5.6 billion in Sharp and Sharp’s board had voted 13-0 to negotiate with Foxconn instead of the state-backed Japanese fund, the Innovation Network Corp of Japan.

No one is saying anything until Gou addresses the media in a coming press conference.

A takeover by Foxconn, which assembles various electronics products such as smartphones and television sets for Apple, Sony Corp and many other major international companies, would vastly expand sales channels for Sharp’s liquid crystal display (LCD) panels.

While a generous Foxconn offer had been predicted, many investors in Japan were surprised to see an overseas firm gain the upper hand over a state fund.

The decision comes after months of uncertainty over the fate of the company, whose display panel business has continued to suffer massive losses despite two major bailouts by its banks in the last four years.