Reports say Japan's Sharp OK's takeover by Taiwan's Hon Hai

TOKYO – Japanese media report that troubled Japanese electronics maker Sharp has agreed to a takeover offer from Taiwanese company Hon Hai, also known as Foxconn.

Sharp Corp. would not immediately confirm the reports Thursday by Kyodo News Service and other media that it had opted for Foxconn rather than a competing consortium of Japanese investors to help restructure its once booming liquid crystal display panel business to cope with competition from Korean and Chinese rivals.

Kyodo put the value of the deal at 660 billion yen ($5.9 billion).

Earlier this month Sharp narrowed the choice of a new major shareholder to Hon Hai Precision Industry Co. or Innovation Network Corp. of Japan which groups Japanese finance companies.

Hon Hai is a major contractor to Apple Inc., assembling products such as iPhones.