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| Sharp shares slide on report it cut Hon Hai sale price | |
| (35 minutes later) | |
| Shares of Japan's Sharp have dipped after a report that it had offered to lower the price of its stake sale to Taiwan's Hon Hai Precision Industry. | |
| Hon Hai had agreed a deal to buy a 9.9% stake in Sharp at 550 yen per share in March. | |
| However, Sharp's shares have plunged 66% since and the Nikkei newspaper reported that the sale will be based on an average stock price instead. | However, Sharp's shares have plunged 66% since and the Nikkei newspaper reported that the sale will be based on an average stock price instead. |
| Sharp shares fell as much as 8% to 182 yen in Tokyo on Monday. | Sharp shares fell as much as 8% to 182 yen in Tokyo on Monday. |
| This follows a 13% plunge on Friday after the firm's credit rating was cut to "junk" status by ratings agency Standard & Poor's. | This follows a 13% plunge on Friday after the firm's credit rating was cut to "junk" status by ratings agency Standard & Poor's. |
| A "junk" credit rating means some institutions may no longer invest in the company, prompting many shareholders to offload its stock. | A "junk" credit rating means some institutions may no longer invest in the company, prompting many shareholders to offload its stock. |
| To make matters worse, S&P warned that its credit rating for Sharp could fall further if the company's earnings and cashflow did not improve. | To make matters worse, S&P warned that its credit rating for Sharp could fall further if the company's earnings and cashflow did not improve. |