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| Sharp shares up on Samsung investment report | Sharp shares up on Samsung investment report |
| (about 1 hour later) | |
| Shares of Japan's Sharp have risen sharply after reports that rival Samsung may invest as much as 10bn yen ($107m; £70m) in the struggling firm. | |
| Sharp, which has projected a loss of 450bn yen for the year to 31 March 2013, has been trying to restructure its operations and revive its business. | Sharp, which has projected a loss of 450bn yen for the year to 31 March 2013, has been trying to restructure its operations and revive its business. |
| However, the firm has found it tough to raise money after its credit rating was cut to "junk" status last year. | However, the firm has found it tough to raise money after its credit rating was cut to "junk" status last year. |
| Sharp's shares jumped as much as 17% to 350 yen on the Tokyo Stock Exchange. | |
| Analysts said that investors were hopeful that an investment from Samsung may help the Japanese manufacturer turn around its fortunes. | Analysts said that investors were hopeful that an investment from Samsung may help the Japanese manufacturer turn around its fortunes. |
| "For Sharp, this is good news from all fronts," said Gerhard Fasol of Eurotechnology Japan in Tokyo. | "For Sharp, this is good news from all fronts," said Gerhard Fasol of Eurotechnology Japan in Tokyo. |
| "Not only can Samsung help Sharp smooth its production and operations, it can also become a key customer of Sharp's products, especially flat screens," he added. | "Not only can Samsung help Sharp smooth its production and operations, it can also become a key customer of Sharp's products, especially flat screens," he added. |
| Difficult times | |
| Sharp's fortunes, like that of other Japanese electronics makers, have been hurt by a decline in global demand and falling prices of TVs. | |
| The firm has announced a series of measures, including cutting 5,000 jobs or just under 10% of its workforce, in an attempt to cut costs. | |
| It has also been looking for potential investors to help with its revival plan. | |
| Last year, Sharp agreed a deal to sell a stake of about 10% to Taiwan's Hon Hai for $800m. | |
| The deal was announced in March with the Taiwanese firm agreeing to pay Sharp 550 yen per share. | |
| But Sharp's shares fell as much as 70% in the subsequent months and the deal has yet to be concluded. | |
| Though Sharp shares have recovered some of those losses, they are still trading well below the 550 yen mark and there are concerns that the deal may not happen at all. | |
| Late last year there were also reports of chipmaker Intel being keen to invest as much as 40bn yen in Sharp. |