Sharp Corp. (6753) rose to the highest in more than three weeks in Tokyo trading after Kyodo News said the maker of liquid-crystal displays is in talks with Apple Inc. (AAPL:US), Google Inc. (GOOG:US) and Microsoft Corp. (MSFT:US) to form partnerships.
Sharp rose 6.2 percent to 172 yen, the highest level since Oct. 5. The stock has plunged 74 percent this year, the biggest percentage loss on the benchmark Nikkei 225 Stock Average. Miyuki Nakayama, a spokeswoman for Osaka-based Sharp, declined to comment on possible partnerships reported by Kyodo.
The maker of Aquos TVs said earlier this month it’s considering raising funds after securing 360 billion yen ($4.5 billion) of funding from its lenders. The 100-year-old inventor of mechanical pencils put up its headquarters and some plants as collateral as the Apple supplier struggles for survival after a record loss last year.
“If the report is true, then it’s a positive for Sharp as it would lead to better utilization of factory capacity,” said Yuji Fujimori, a Tokyo-based analyst at Barclays Plc.
Japan’s largest maker of LCDs seeks to jointly develop tablet computers and supply its panels to the U.S. companies, the newswire reported late yesterday, without saying how it got the information. Sharp is also in talks with some domestic companies to supply its new displays, it said.
With Intel Corp. (INTC:US), Sharp seeks to jointly develop a micro- processing unit, Kyodo News said. Sharp is already negotiating with Dell Inc. (DELL:US), Hewlett-Packard Co. (HPQ:US) and Lenovo Group Ltd. (992) to spur sales, the report said. Sharp is probably asking Apple, Intel, Google, HP and Microsoft to invest when its earnings and share price recover, Kyodo News reported. Nakayama denied Sharp is talking to the companies for investment.
To contact the reporter on this story: Naoko Fujimura in Tokyo at email@example.com
To contact the editor responsible for this story: Michael Tighe at firstname.lastname@example.org