Foxconn is now the clear favorite to buy Sharp after offering $5.5 billion for the moribund electronics firm. The Wall Street Journal is reporting that Foxconn's bid was so large that it's now entering "exclusive talks" to seal the deal. Previously, the firm was running a close-second to INCJ, an investment fund backed by the Japanese government. It was hoped that INCJ would win in order to keep one of Japan's oldest electronics firms out of the hands of foreign owners. Unfortunately, it's believed that the fund offered around $2.5 billion for the loss-making maker of displays, home entertainment equipment and appliances.