Shares of Apple supplier Sharp have plunged so far that Foxconn’s deal to buy a stake in the struggling display maker could be in jeopardy. 
AppleInsider:
In the last five months, Sharp’s stock price has dropped by 70 percent, marking new 40-year lows. That’s prompted an effort by Hon Hai Precision, parent company of Apple’s device assembly partner Foxconn, to renegotiate its deal to buy a significant stake in Sharp, according to The Wall Street Journal.
Foxconn announced in March that it planned to buy a 10% stake in Sharp’s money losing LCD business. At that time, it would have equaled an $808 million stake in the company. This announcement prompted industry-wide speculation that the two companies were aligning to secure more of Apple’s business.
June saw an announcement that Foxconn was considering an even greater stake in Sharp, after a recent fall in the LCD maker’s share price.
Sharp’s shares have now fallen so much, that Foxconn wants to renegotiate its original deal. The deal was based on Sharp share price of 550 yen, or $6.93, but since then Sharp’s stock has fallen to a dismal 175 yen.
Now the Journal reports that Foxconn is expected to hold out for the best deal it can get from Sharp. It could also simply wait until Sharp is available for a bargain basement price, and purchase the company outright.
Sharp has announced via its president earlier this month that it will ship screen for Apple’s next iPhone, which is expected to be unveiled on September 12.
