DHAKA: Shares in electronics giant Sharp lost 11% in Tokyo amid reports that the delay in its takeover by Taiwanese manufacturer Foxconn was due to previously undisclosed losses.

The $4.3bn (£3.08bn) deal was announced by Sharp on Thursday.

But Foxconn later said it would not sign the deal until it clarified "new information" Sharp had provided, without giving any specifics, reports the BBC.

Foxconn, also known as Hon Hai, assembles most of the world's iPhones.

Several unconfirmed reports quoting unnamed sources have emerged saying that the "new information" provided at the last minute had to do with huge losses on Sharp's balance sheet.

Nikkei said Sharp had on Wednesday morning sent Foxconn documents listing the details of these losses, including severance pay, breach-of-contract penalties, and repayments of government funds.

But another reports said the liabilities could also end up being much lower if not all of them are incurred.

Sharp is one of Japan's oldest technology firms, but it has been saddled with heavy debts and has faced two big bailouts in recent years. In 2012 it came close to bankruptcy.

It was founded in 1912 and has pioneered developments in television engineering.

Japanese officials had been reluctant to let the firm be taken over by a foreign firm, particularly because of its breakthroughs in display panel technology.

BDST: 1558 HRS, FEB 26, 2016
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