Sharp mulls selling most of LCD business to Japan Display -Yomiuri

TOKYO (Reuters) - Sharp Corp said it was considering various options for its liquid crystal display business after a report said it may sell a majority stake in the struggling operations to rival Japan Display Inc. Sharp could spin off the business into a joint venture in which it would hold less than 50 percent, the Yomiuri newspaper reported on Friday. A Sharp spokesman said the company was considering various options but denied it was in any talks. "We have not entered into any negotiations with specific companies," he said. Osaka-based Sharp was once a highly profitable manufacturer of premium TVs and a favoured screen supplier to Apple Inc, but it has come under heavy pricing pressure from Asian rivals. In May, it sought a $1.9 billion bailout from banks and promised to cut 5,000 jobs, or 10 percent of its staff. Sources have told Reuters that Sharp was considering a deal with Japan Display's top shareholder, the state-controlled Innovation Network Corporation of Japan, as well as Taiwan's Hon Hai Precision Industry Co. Shares in Sharp rose 5.95 percent by the end of morning trade, outperforming the benchmark Nikkei average's 2.77 percent rise. Chief Executive Kozo Takahashi had initially resisted calls from investors for a more drastic overhaul of the LCD business, saying he was not considering a spin-off. But in July, he told reporters that Sharp's losses, totalling 28.8 billion yen ($237.80 million) on an operating basis in April-June, meant it needed to consider a wider range of options. ($1 = 121.1100 yen) (Reporting by Chris Gallagher and Ritsuko Ando; Editing by Chang-Ran Kim and Stephen Coates)