On Thursday, for a few hours it looked as if Sharp, the ailing consumer electronics business based in Japan, had secured a takeover of $5.5 billion from Taiwan-based Foxconn, the huge contract manufacturer that assemblies products for Apple as well as other big-name foreign brands.
However, later Thursday afternoon, Foxconn hesitated, saying it already had told Sharp it needed more time to review some disclosures that came through over the last minute prior to committing.
The door is still open for this deal, which would be the biggest acquisition of a technology company based in Japan, by a buyer from overseas.
For now however, an agreement between these two companies is up in the air, with Foxconn saying it had to examine some new material information that Sharp had provided late Wednesday.
The two companies hoped to have signed a deal after the board at Sharp voted on Thursday morning on accepting the offer from Foxconn.
Foxconn said it told Sharp Wednesday night prior to the board vote, that it would need to postpone the signing of an agreement until the two reached a satisfactory understanding as well as resolution to the situation.
No mention has been made as to what these disclosures contained and if they posed a threat of significance to the closing of the deal.
A specialist in corporate governance in Japan said that the plans Sharp has to issue new shares as part of this deal would require a thorough disclosure of the contingent liabilities of the company. For example the possible future costs that are related to the business contacts or the financial forecast.
Sharp and Foxconn have stumbled over other deals in the past. Terry Gou the billionaire founder of Foxconn acquired a minority share in Sharp LCD factory in 2012.
At that time, Foxconn was planning to purchase a share of Sharp itself, however that part of the negotiation fell through over a disagreement in price.