An analysis of Sharp acquisition negotiation based on the Graph Model for Conflict Resolution

Abstract

Sharp, which fell into a serious business crisis, received a proposal for support from Hon Hai Precision Industry of Taiwan and the Innovation Network Corporation of Japan. In March 2016, Sharp finally decided to receive Hon Hai support and Hon Hai took over Sharp. During the acquisition negotiations, Hon Hai pressed Sharp's main bank for waiver of additional credits. In this paper, the above situation is modeled using a framework called the Graph Model for Conflict Resolution (GMCR). Equilibria based on the four solution concepts of Nash stability, general meta-rationality, symmetric meta-rationality, sequential stability are obtained by calculation program. We compare the obtained equilibria with the result of reality and examine it.