Sharp shares up on Intel deal report

Shares in Sharp, Japan's largest maker of liquid-crystal displays, rose the most in more than two months in Tokyo after Kyodo News said the company was in final talks to sell a stake to Intel.

The shares jumped as much as 11 per cent, headed for the biggest gain since September 4, before ending the day 7.2 per cent higher. The Nikkei-225 Index edged up 0.04 per cent.

Sharp is seeking between 30 billion yen (HK$29.1 billion) and 40 billion yen, which would make Intel its top shareholder, Kyodo reported late yesterday.

A capital alliance with a prominent US company might help Sharp's renegotiation with Foxconn Technology over a share sale, Kyodo said.

Sharp has been unable to settle a proposed deal with Foxconn, after initially agreeing to sell a 9.9 per cent stake to the Taipei-based company in March, as the Japanese electronics maker's shares have dived 76 per cent this year,

"The report is easing some concerns about Sharp," said Mitsuo Shimizu, a Tokyo-based analyst at Iwai Cosmo. "Still, the rally will be short-lived, as the money isn't enough to solve Sharp's problems."