LAS VEGAS--A Sharp Corp. (6753.TO, SHCAY) executive said Monday there are no current talks with Intel Corp. (INTC) on a possible capital injection, with a deal looking increasingly unlikely after the struggling Japanese electronics maker agreed last month to an investment from Qualcomm Inc. (QCOM).
In a briefing with reporters, Kozo Takahashi, executive vice president overseeing Sharp's international operations, said the company is leaving all options open for ways to bolster its severely weakened balance sheet. It isn't limiting potential partnerships to new share issuances or convertible bonds, the company said.
In November, The Wall Street Journal reported Sharp was in talks with Intel, Dell Inc. (DELL) and Qualcomm about a capital injection. After announcing its deal to receive as much as 9.9 billion yen ($113 million) in additional capital from Qualcomm, Sharp said talks with Intel fizzled out.
"It's probably best to say that there are no current talks. There was a greater possibility of something happening a few months ago," Mr. Takahashi said after the company's presentation at the Consumer Electronics Show in Las Vegas.
Sharp badly needs additional capital. Sharp has forecast a second-straight year of record losses and is burning through cash. Its credit rating has been lowered to junk status, that is, below investment grade. And it has sold off assets such as overseas television factories to raise money.
Write to Daisuke Wakabayashi at [email protected]
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