Troubled electronic giant Sharp Corp. said it plans to terminate negotiation on capital tie-up with Taiwanese business partner Hon Hai Precision Industry Co. and will instead prioritize alliance talks with another company, sources unveiled.

Sharp recently decided to form capital alliance with Hon Hai, also known as Foxconn, in which it is set to sell 9.9% stake to the Taiwanese firmat a price of 550 yen per share.

The Osaka-based electronics firm expected that the deal with Hon Hai, which is said to be concluded in March 26, is unlikely as it takes time to complete important procedures set by authorities in Taiwan, the sources revealed.

In its conclusive statement, Sharp will center its attention on discussions over potential capital deal with another company, which it declines to disclose.

Nevertheless, Sharp pointed out that Hon Hai will still continue its business alliance with them which includes joint operation of a Sakai-based liquid crystal display plant.