SHCAY Sharp Corporation (PK)

TOKYO—The head of a Japanese government-backed investment fund that wants to take over struggling Sharp Corp. said Friday that he wasn't giving up, even though Sharp has indicated that it is leaning toward a rival bid from Taiwanese electronics assembler Foxconn.

Toshiyuki Shiga, chief executive of Innovation Network Corp. of Japan, said his firm's takeover proposal was better for Sharp's shareholders, employees and customers.

"People often compare the bid price offered by us and Foxconn, but the concept of our plan is totally different from Foxconn's," Mr. Shiga said.

According to people familiar with the matter, Foxconn, which is formally known as Hon Hai Precision Industry Co., has offered Â¥ 659 billion ($5.8 billion) for Sharp. INCJ, which is majority owned by the Japanese government, has offered more than ¥ 300 billion, but is asking lenders to pitch in by writing off debts worth ¥ 300 billion, these people say.

Mr. Shiga said INCJ aims to merge Sharp's liquid-crystal-display business with panel maker Japan Display Inc., in which the fund is a major shareholder. Both companies are key suppliers to Apple Inc.

"We want to create an entity that can compete in the world," said Mr. Shiga, who is also vice chairman of Nissan Motor Co.

Sharp said on Feb. 4 that it was devoting more resources to considering Foxconn's bid, and it sent a delegation to Taiwan this week to negotiate. Foxconn Chairman Terry Gou has said he hopes to sign a deal for Sharp by the end of the month.

A senior official in Prime Minister Shinzo Abe's administration said Friday that he welcomed a potential deal by Foxconn. "I think it's a really good outcome," the official said

Peter Landers contributed to this article.

Write to Atsuko Fukase at atsuko.fukase@wsj.com

(END) Dow Jones Newswires

February 19, 2016 06:55 ET (11:55 GMT)

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