Report: Foxconn likely to back out of Sharp deal

Bloomberg reports that Foxconn will probably back away from plans to invest in Sharp after the Japanese company announced it has secured loans from two banks worth a total of 360 billion yen. Analysts have said the deal offers Foxconn an opportunity to get out of its commitment to invest in the struggling company. A source told Bloomberg that the companies would continue to cooperate but without investment Foxconn originally agreed to purchase 9.9 percent of Sharp for 862 million USD, however the companies agreed to a one year renegotiation period after Sharp massively increased its loss forecast due to dwindling TV demand. Sharp's shares have continued to fall since then reports Bloomberg.