Toshiba’s Record Fall Highlights U.S. Nuclear Cost Nightmare
- Writedown related to dispute over value of Westinghouse deal
- Toshiba rating cut to BB at R&I; watched for further downgrade
Nuclear Nightmare: Why Toshiba Shares Are Plunging
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Toshiba Corp. plunged by the most on record as the once heralded U.S. nuclear renaissance turns into a nightmare for the Japanese company.
The shares fell by 20 percent, the most since 1974, according to available data, to close at 312 yen in Tokyo, following a 12 percent drop Tuesday. Toshiba said it may have to write down billions related to an acquisition made by U.S. unit Westinghouse Electric that was geared toward completing the newest generation of reactors at two U.S. facilities. The projects, overseen by utilities Southern Co. and Scana Corp., are years behind schedule and billions of dollars over budget.