Sharp shares fell in Tokyo as Foxconn Technology Group is said to delay finalizing a takeover agreement amid questions over the Japanese electronics maker’s performance in the current quarter.

Foxconn, which agreed to pay more than 600 billion yen ($5.3 billion) for control of Sharp, has asked the Osaka-based company and its auditor for the latest financial results, said people with knowledge of the matter, who asked not to be identified because the matter is private. Sharp dropped as much as 11 percent, the biggest intraday decline in almost three weeks, before trading 9.2 percent lower at the trading break in Tokyo.

Sharp’s board last month voted to accept Foxconn’s offer over a competing bid from Innovation Network Corp. of Japan, a government-backed investment fund that planned to pay about 300 billion yen. Just hours after the board decision, Foxconn said it would postpone finalizing the agreement until it could work through material new information it had received from Sharp. That information included about 300 billion yen in potential liabilities for restructurings and layoffs, people familiar with the matter said.

“A fourth-quarter loss for Sharp is a given, there aren’t likely to be deal-breaking surprises there,” said Atul Goyal, an analyst at Jefferies Group LLC. “This looks like another negotiating ploy by Foxconn.”

Foxconn is negotiating with Sharp’s banks to mitigate the costs of those liabilities. Under certain circumstances, Foxconn may seek to reduce the 100 billion yen it had planned to pay Mizuho Financial Group and Mitsubishi UFJ Financial Group for preferred stock they hold in Sharp, according to a different person familiar with the matter.

Foxconn’s lawyers and bankers have sorted through the contingent liabilities and concluded earlier this month they will likely not require major changes in the board-approved deal, people familiar with the matter have said. The Taiwanese company is taking extra precautions with the period’s financial results because of the last-minute notice about the liabilities, the people said.

“Sharp and Foxconn have not set a signing date. Both companies are working hard to reach a satisfactory agreement as soon as practically possible,” said Toyodo Uemura, a spokesman for Sharp. Foxconn didn’t respond to inquiries sent to its media department.

Sharp has forecast a 10 billion yen operating profit for the year ending March 31 and didn’t give net income or quarterly outlooks. The company will probably report a net loss of 23.9 billion yen in the final three-month period, according to an average of four analyst estimates compiled by Bloomberg.

The company has been losing money for years and its need for financial support set off the takeover battle between Foxconn and INCJ last year. Its cash totaled 208.5 billion yen at the end of December, according to data compiled by Bloomberg.

Sharp faces the expiration of 510 billion yen in credit lines and loans on March 31. The company’s banks have pushed for a bailout agreement before those loans are renewed, people familiar with the matter have said.

The company said Wednesday it will give employees a two-month bonus, half the amount sought by the unions. Sharp also plans to raise starting salaries for new workers. (Bloomberg)