Japan Display’s balance sheet has a huge amount of money invested by the government backed Innovation Network Corp. INC was considering investing in troubled Sharp's LCD unit to broker a merger or partnership with Japan Display. Sharp's banks are telling it to find a buyer for all or part of its ailing LCD business within months.
Japan Display Chairman and Chief Executive Mitsuru Homma told reporters that if there were such discussions, he would not say no.
Sharp has some extremely valuable technology and manufacturing technology that Japan Display does not.
There was also a risk that if Japan Display didn’t, Sharp technology would going “to a third country" in other words Hon Hai Precision Industry Co Ltd of Taiwan.
Homma was speaking after Japan Display announced that it swung to an operating profit of $85.8 million in the six months through September. Its own misery was ended when Apple placed shedloads of orders.
Sharp's July-September operating profit tumbled 86 percent from a year earlier and shows little improvement in business since a $1.9 billion bailout in May.