Hon Hai Precision Industry Co., Ltd. (TPE:2317) also known as Foxconn Technology Co., Ltd. (TPE:2354) decided that it will not invest in Sharp Corporation (PINK:SHCAY) (TYO:6753) after both companies failed to amend an earlier agreement, according to a report from Reuters.

Foxconn Technology Co., Ltd. (TPE:2354) chairman Terry Gou informed the bankers for Sharp Corporation (PINK:SHCAY) (TYO:6753) that the proposed agreement, which is has a deadline on March 26, is not going to happen. However, Gou indicated that Foxconn is still open to invest in the future if the management Sharp would be able to develop a new business plan. Gou said that he would consider the merits of a possible investment.

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Foxconn Technology Co., Ltd. (TPE:2354) offered to acquire almost 10 percent stake in Sharp Corporation (PINK:SHCAY) (TYO:6753) after the stock price of the company dropped to its lowest price in 37 years. Gou believed that owning a stake in the Japanese display manufacturer is beneficial for his company because it is one of the leading providers of components for Apple Inc (NASDAQ:AAPL). Analysts believe that the iPhone maker needs Sharp because it has a large capacity and it if it goes down, Apple’s business operative will be affected negatively.

The agreement between Foxconn Technology Co., Ltd. (TPE:2354) and Sharp did not materialize due to the demand of the struggling Japanese display manufacturer that it will have a degree of management control. In addition, Foxconn wants to reduce the $708 million price tag after the stock value of Sharp declined, and prompting the company to secure bailout money from Mizuho Financial Group Inc and Mitsubihishi UFJ Financial Group.

According to a previous report from Reuters, the two banks do not expect Sharp Corporation (PINK:SHCAY) (TYO:6753) to revise the terms of the deal with Foxconn.

Miyuki Nakayama, spokesperson for Sharp, and a spokesperson for Foxconn, confirmed that the two companies would continue its negotiation until the deadline on March 26.

On the other hand, Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) invested $111.5 million in Sharp Corporation (PINK:SHCAY) (TYO:6753) to obtain the supply of large LCD panels. The South Korean electronics manufacturer acquired a 3 percent stake in the company. Both companies agreed to boost their mutual trust relationship in the area of corporate value and to increase Sharp’s capital adequacy.

In December, QUALCOMM, Inc. (NASDAQ:QCOM) said it will acquire 2.6 percent stake in Sharp Corporation and agreed to invest $120 million. The two companies agreed to work together on the fabrication of chipsets.

The struggling Japanese display maker is expected to raise additional funds to repay its $2.1 billion convertible bonds due on September. Analysts and other sources believe that the company might resort to equity financing.

Sharp Corporation is also negotiation with Lenovo Group Limited (PINK:LNVGY) (HKG:0992) regarding the sale of its Chinese TV assembly plant.