Electronics giant Samsung is set to buy a three per cent stake in struggling Japanese firm Sharp for 10.3bn yen (£73m).
The share offer from Samsung is an effort to bolster its finances.
The struggling Japanese electronics maker said in a statement that it will supply large TV panels and expand shipments of smaller LCDs for use in mobile devices to Samsung.
A deal would come as Sharp, which received a $4.4bn bailout from its banks in October, tries to boost LCD plant utilisation, particularly at its Kameyama factory in central Japan.
It has had to slash production of Apple iPad screens at the facility since the start of the year, other sources told Reuters in January, as consumer demand shifts to the iPad mini, for which Sharp is not a supplier.