Mitsubishi Motors Falls on Nikkei Report on Capital: Tokyo MoverYuki Hagiwara
Mitsubishi Motors Corp. fell the most in more than two years after the Nikkei newspaper reported the carmaker is planning a capital reorganization to offset accumulated losses.
The stock fell as much as 11 percent to 162 yen, headed for the biggest decline since March 2011, before trading at 173 yen as of 10:44 a.m. in Tokyo trading. The benchmark Nikkei 225 Stock Average rose 1.6 percent.
Mitsubishi’s board plans to meet this week to discuss a reduction of capital and raising the limit on the company’s ability to issue new shares, the Nikkei reported today, without saying where it got the information. Separately, the Tokyo Shimbun reported the company is planning to sell stock. The company said in a statement today that it wasn’t the source of reports related to future financing.
Mitsubishi was saddled with 924.6 billion yen ($8.9 billion) in negative retained earnings as of the end of March, according to the company.