Sharp shares fall nearly 10% on report it will seek aid from banks

Shares in Sharp tumbled nearly 10 percent in early trade Tuesday after the Nikkei business daily reported that the struggling electronics maker plans to request aid from two main lenders, including a 150 billion yen ($1.24 billion) debt-for-equity swap.
Sharp fell to 229 yen in the first few minutes of trade, down 9.84 percent from Monday's close, before slightly rebounding to stand at 237 yen mid-morning.
The leading Nikkei said Sharp was seeking to enhance its capital base to as it tries to restructure, without giving a source for the information.
The company plans to request aid from Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ, it said.
The Nikkei also reported that Sharp is considering closing four domestic factories that produce electronic components as well as withdrawing from its solar cell business.
As the company writes off production equipment in unprofitable businesses, its net loss for the year ending in March is likely to exceed 100 billion yen, up from the earlier forecast of 30 billion yen, the business daily said.
As early as this week, Sharp will lay out its earnings outlook and structural reform plans to Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ, which will carefully review the proposal before deciding whether to extend support, it reported.
Sharp would not confirm the report, saying it was working towards a "drastic reform" of its operations but nothing had been decided yet.
It also added it was drawing up a new mid-term business plan by May and had no plans at the moment to revise earnings forecasts.
Sharp is a major electronics maker whose product line includes the Aquos brand and is also a key supplier for Apple.
But the company, along with Sony and Panasonic, has been undergoing a painful restructuring to move past years of struggle largely tied to huge losses in its TV unit, hit by lower-cost rivals.