Foxconn and Sharp will both hold board meetings today in an attempt to close a chaotic takeover deal after tough talks to cut the $6 billion (€5.3 billion) acquisition price by about a third, people familiar with the matter said yesterday.

The Taiwanese group's move for the century-old Japanese company has been stalled for a month as Terry Gou, Foxconn's founder, pored over Sharp's finances and potential liabilities, resulting in the lowering of his original offer.

Under the new terms, Sharp is expected to raise 389 billion yen (€3.05 billion) by issuing new shares to Hon Hai Precision Industry, Foxconn’s parent, which would give it a two-thirds stake.

The amount is Y100 billion less than the original offer, and instead of ¥118 a share Foxconn is expected to pay ¥88 a share. But the terms could still change following board discussions, according to one of the people.

In a statement, Foxconn confirmed that its board would meet today, but it added: “Whether the Sharp deal will be on the agenda will depend on the progress on discussions between the two sides.”

Since Sharp’s disclosure, Mr Gou has hardened his negotiating position, especially with the struggling Japanese group under pressure to sign a deal before a large amount of its loans expire at the end of March.

Having competed aggressively to woo Sharp, the revised terms of Foxconn’s offer bore an unexpected resemblance to a rival bid by the state-backed Innovation Network Corporation of Japan which had included a ¥300 billion investment and a request for ¥300 billion in bank assistance. “It’s frustrating but there is no way to turn back now,” said one person close to Sharp’s banks.

Yesterday, Sharp said it was considering lowering its guidance following a report in the Nikkei business daily that it would report a net loss of about ¥200 billion for the current financial year ending in March.

– (Copyright The Financial Times Limited 2016)