Sharp erases gains

A man walks past an advertisement for Sharp at an electronics retail store in Tokyo. File photo: Toru Hanai

A man walks past an advertisement for Sharp at an electronics retail store in Tokyo. File photo: Toru Hanai

Published Apr 17, 2015

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Tokyo - Sharp Corporation fell in Tokyo, erasing earlier gains, as Japan’s Topix index fell from a seven-year high.

The stock fell 3.6 percent, the most in six weeks, to 267 yen as of 9:54 a.m. The shares earlier rose as much as 4.3 percent after Nikkei reported that Mitsubishi UFJ Financial Group and Mizuho Financial Group agreed on a 200 billion yen ($1.7 billion) financing package.

Debt-strapped Sharp, headed for a third loss in four years, has said it’s considering “drastic reform” as it prepares a management plan for release in May. The company’s shares got a boost last week after a person familiar with the matter said the company plans to ask a government-backed fund for help spinning off part of its liquid-crystal display business.

Sharp has been discussing options including a debt-for-equity swap with lenders, people familiar said in March. Mizuho and Mitsubishi UFJ lent the company 360 billion yen in September 2012, and 150 billion yen more the following year, according to its 2014 annual report.

Sharp may sell its Osaka headquarters, Nikkei reported on Thursday. The company may also shut its plant in Tochigi prefecture, north of Tokyo, Kyodo news reported the same day.

The Topix index pared its third straight weekly increase, as the yen held five days of gains. The benchmark declined 0.3 percent.

Shares of Sony, Japan Display and Nintendo also fell.

Bloomberg

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