Sharp has been trying to restructure its operations amid mounting losses.

 

However, it has found it tough to raise money after its credit rating was cut to "junk" status last year. 

 

Analysts³ said the investment from Samsung, the world's biggest TV maker, was likely to provide a boost to Sharp's efforts to revive its business.

 

"For Sharp, this is good news from all fronts," said Gerhard Fasol of Eurotechnology Japan in Tokyo.

 

"Not only can Samsung help Sharp smooth its production and operations, it can also become a key customer of Sharp's products, especially flat screens," he added.

 

His views were backed by a statement from the South Korean firm which said that the deal would help to "lay a firm foundation for Samsung to secure a steady supply of liquid crystal display (LCD) panels from diversified⁴ sources".

 

Earlier in the day, shares in Sharp had jumped following reports that such a deal was set to be announced. 

 

Its shares rose as much as 17% to 350 yen on the Tokyo Stock Exchange, before closing at 341 yen.

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