Foxconn and Quanta merger nears

WE HAVE RECEIVED information that the deal between Hon Hai Precision Industries (market name: Foxconn) and Quanta Computer is nearing completion, with both sides currently discussing the buyout stock price and finalising the merger deals.

The deal is practically set in stone right now, and the only thing that could collapse this deal is if Quanta refuses Foxconn's stock price and wants to inflate it to heavens high. Somehow, this probably will not happen and Foxconn will acquire Quanta.

According to our sources, Foxconn is doing this merger as a tactical move to stop the growth of ASUSTeK's lucrative OEM and ODM business. With the combined strengths of Foxconn and Quanta, ASUSTeK and Compal should be the next in line for the merger part, or Foxconn could slowly squeeze them out from the business of manufacturing notebooks, desktops, servers and pretty much everything else (including motherboard manufacturing).

The only problem Hon Hai has right now with its retail brand is a general lack of perception about how the distributinon channel, and the distribution of information through the media, work in practically all countries - sans the countries Foxconn is eligible to sue people in. µ

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Foxconn to snaffle up Quanta