Foxconn balks at last minute after announcing bid for Sharp

Taiwan electronics manufacturer Foxconn on Thursday pulled back from closing on a US$5.5 billion takeover of Japanese consumer electronics firm Sharp announced the same day, The New York Times reported. The Times cited an unnamed source as ascribing Foxconn’s hesitation to Sharp’s disclosure the previous day that its potential liabilities could total close to US$3 billion. That amount is roughly equal to the difference between the bids from Foxconn and Sharp’s other suitor, the government-backed Innovation Network Corporation of Japan. If closed, the deal would mark a new front in Foxconn’s attempt to diversify its contract manufacturing operations beyond mainland China.