Japanese electronics maker Sharp chief executive Kozo Takahashi has flown over to Taiwan to hammer out a deal with Apple (NASDAQ:AAPL) supplier Foxconn.
Earlier in the week, the two announced a $6bn deal which would see Foxconn take a 66% stake in Sharp.
But later that day, Foxconn said it would not sign the deal until it had clarified some "new material information" from Sharp.
The delay to the move has since been cited as due to previously undisclosed liabilities that could exceed Y300bn ($2.7bn) according to reports.
Takahashi will meet with Terry Gou, Foxconn’s founder, to ensure the deal for the loss-making company does not fall through.
“Teams from both companies are currently in discussions with the aim of reaching a comprehensive understanding and resolution of the situation. We hope to reach a satisfactory agreement as soon as possible,” Foxconn said.
The deal is seen as a move to combat the reducing iPhone sales, which some analysts have flagged up as a concern for Foxconn, an assembler of the phones for Apple.
Sharp’s board had backed Foxconn’s offer over a rescue plan offered by the state-backed fund Innovation Network Corporation of Japan.
Should it go through, the deal would be the fourth largest foreign acquisition of a Japanese company following Citigroup’s $7.9bn purchase of Nikko Cordial, the $6.9bn deal between General Electric and Japan Leasing in, and Vodafone’s $6.5bn acquisition of Japan Telecom.
Shares in Sharp plummeted 15% on Friday.