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Nissan shares tumble after chairman's arrest - Daily News Egypt

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Nissan shares tumble after chairman's arrest

Nissan’s stock prices plummeted as the automaker prepares to oust arrested chairman Carlos Ghosn. The Brazil-born executive was detained on accusations of financial misconduct.Shares of Nissan Motor Co. dipped 4.3 percent on Tuesday, a day after its high-flying chairman Carlos Ghosn was arrested on suspicion of falsifying financial reports and other misconduct.

Ghosn, 64, was arrested on Monday in Tokyo and is being held as prosecutors conduct an investigation into allegations that he underreported his income by around 5 billion yen ($44.5 million, €38.8 million) over five years.

"He basically deprived Nissan's shareholders of opportunities to judge if the amount of his salary was appropriate," said Toru Ibayashi, executive director of Wealth Management at UBS Securities Japan.

"This incident will make investors review if Japanese corporate governance is working."

Nissan and Mitsubishi, two parts of the Nissan-Mitsubishi-Renault alliance Ghosn led, have announced their intention to remove him as chairman, with Renault's board also meeting to decide his fate.

It is unclear how long Ghosn could be held, or even when prosecutors would officially announce the charges against him.

dv/rt (AFP, Reuters)

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Topics: nissan

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