Analysts say that by this move both companies would be gaining. Sharp would get the necessary financial injection, while Samsung would hold 3% stake in Sharp. Furthermore, according to three sources familiar with the situation, negotiations on investment are already in the final stage. When asked to comment on the story, Sharp ambiguously told that this is not the news they have officially announced.

Additional problems for Sharp lately caused the reduced demand for large screens designed for iPad. Apple due to increased demand for the iPad mini increasing orders for smaller screens for tablet, which are not produced by Sharp, and reduced orders for larger screens.

[Ed - Samaung's investment is interesting as Sharp has been a big supplier to Apple and also lists Foxconn as one of their prinicpal investors. It will be interesting to see what if anything this will do to the market.]

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