Trouble on the horizon for Sharp / Foxconn deal?

The Japanese company had decided to sell two thirds to Foxconn. However, the Taiwanese EMS-giant reportedly said it would not sign the deal until it had clarified some “new material information” from Sharp, according to a report in Reuters. The report states that Sharp had contingent liabilities which were in the JPY 300 billion level (USD 2.7 billion), Reuters reports cititng three sources familiar with the matter. Sharp however says in a statement that “this is not based on our announcement. Sharp is currently discussing with Hon Hai Precision Industry to reach a definitive agreement by confirming our managerial status including Sharp's contingent risks.” The company goes on saying that its contingent liabilities have already been disclosed in its securities report and quarterly report based on accounting rules, and that no further disclosure is required.