Rumors that Foxconn would make a play for Sharp started last month with speculation about a $5.3 billion transaction. Sharp also was supposedly being looked at by government-run fund Innovation Network Corp. of Japan. The fund was thought to have put together a $2.5 billion bid for Sharp that would have added a $2.67 billion cash infusion, and a $1.78 billion line of credit.
As one of Apple's main suppliers of iPhone displays, Sharp's purchase by Foxconn would give the manufacturer easy access to one of the parts it needs to have in stock while manufacturing the Apple iPhone.
We expect that full details about the acquisition, including an estimated closing date, will be announced in the days ahead.
source: Nikkei via Gizmodo