Sharp trying to sell off LED unit

sharp2Troubled Japanese telly maker Sharp has announced that it is chatting to several companies about selling off its LCD business.

Apparently the banks are under pressure for Sharp to find a partner for the loss-making division.

Sharp was given a $1.7 billion rescue in May but Sharp is struggling to make the investments it needs to keep its screen business competitive.

Its main lenders want the company to find a buyer for all or part of its ailing LCD business.

Chief Executive Kozo Takahashi told the press that he could not name names, but was in negotiations with multiple companies. He could not say when any deal would be finalised.

Takahashi stressed that a direct investment into Sharp itself was not being discussed.

Hon Hai Precision Industry has been suggested as a potential buyer and a state-backed fund is also considering a direct investment in Sharp or merging the company’s LCD unit with rival Japan Display.

Sharp’s July-September operating profit fell 86 percent to $29 million from a year earlier, dragged down by falling prices of smartphone displays and slow progress in reducing inventory.