Falling knife

14 November 2012 By Peter Thal Larsen Follow @Peter_TL

Even coming from Qualcomm and Intel, a $378 mln investment won’t help the ailing electronics group. It has net debt of $12 bln and is bleeding cash. The best hope is that the U.S. groups see potential in Sharp’s long-overdue restructuring.

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U.S.-based Intel Corp and Qualcomm Inc are in talks to jointly invest about 30 billion yen ($378 million) in debt-stricken Japanese consumer electronics maker Sharp Corp, two sources familiar with the matter told Reuters on Nov. 14.
Sharp may reach an agreement as early as the end of this month with Qualcomm, said one of the sources, who asked not to be identified as they were not authorized to speak to the media, adding talks with Intel are less concrete amid the chipmaker’s unclear financial picture.
By 1pm in Tokyo, Sharp shares were up 7 percent at 164 yen.

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