Foxconnformally known as Hon Hai Precision Industry Co.and Innovation Network Corp. of Japan, a government-backed fund, have been competing for control of Sharp since last year. The century-old Osaka-based electronics maker has suffered deep losses after its consumer-electronics business declined and it faced tougher competition in the display panels it sells to smartphone makers.
INCJ initially had the advantage, people familiar with the process said, in part because its bid would keep Sharps display technology in Japanese hands.
But Foxconn Chief Executive Terry Gou traveled to Japan last week to make a personal appeal for his bid, which Foxconn raised last week to ¥659 billion ($5.5 billion), according to people familiar with the matter. That compared with an offer from INCJ the people said was worth no more than ¥300 billion.