Hon Hai seeks joint ownership of Sharp's LCD business

TOKYO (REUTERS) - Taiwan's Hon Hai Precision Industry is asking Sharp to turn the Japanese company's small and mid-sized liquid crystal display panel (LCD) business into a joint venture between the two, Yomiuri newspaper reported on Saturday.

Sharp is also in separate talks to raise money by issuing convertible bonds to Intel and aims to reach an agreement by the end of the month, the paper said.

Hon Hai, headed by chairman Terry Gou, has been expected to play a critical role in the revival of the struggling Japanese TV maker with business and financial assistance, but talks between the companies for a much-needed cash infusion have stalled for weeks.

Hon Hai's demand for Sharp to spin off and sell part of its small- and mid-sized LCD business is likely to further muddy the waters as the Japanese firm is hesitant to cede part of its core business seen as a key to its revival, Yomiuri said, without citing sources.