Glory days gone: Sharp was once a profitable manufacturer of premium TVs and a favoured screen supplier to Apple.
TOKYO: Sharp Corp said it was considering various options for its liquid crystal display business after a report said it may sell a majority stake in the struggling operations to rival Japan Display Inc.
Sharp could spin off the business into a joint venture in which it would hold less than 50%, the Yomiuri newspaper reported.
A Sharp spokesman said the company was considering various options but denied it was in any talks.
"We have not entered into any negotiations with specific companies," he said.
Osaka-based Sharp was once a highly profitable manufacturer of premium TVs and a favoured screen supplier to Apple Inc, but it has come under heavy pricing pressure from Asian rivals.
In May, it sought a US$1.9bil (RM7.9bil) bailout from banks and promised to cut 5,000 jobs, or 10% of its staff.
Sources have told Reuters that Sharp was considering a deal with Japan Display's top shareholder, the state-controlled Innovation Network Corporation of Japan, as well as Taiwan's Hon Hai Precision Industry Co.
Chief executive Kozo Takahashi had initially resisted calls from investors for a more drastic overhaul of the LCD business, saying he was not considering a spin-off.
But in July, he told reporters that Sharp's losses, totalling 28.8bil yen (RM999mil) on an operating basis in April-June, meant it needed to consider a wider range of options. — Reuters
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