Foxconn said to be nearing deal with Sharp

Taipei

FOXCONN Technology Group has signed a letter of intent to buy a stake in Sharp Corp's liquid-crystal display (LCD) business in a deal that would give Foxconn management control as the Japanese electronics maker spins off the unit, according to people familiar with the plan.

The companies still need to complete price negotiations and due diligence, and there is no guarantee a final deal will be reached, said the people, who asked not to be identified because the plan hasn't been announced. Taipei-based Foxconn would get management control under the preliminary terms, though it won't necessarily hold a majority of equity in the unit, which makes display panels for mobile phones and tablets, they added.