Japanese prosecutors raid firms over maglev train contracts (updated)

Kajima

18/12/2017 02:18

* Shimizu, Kajima raided on Monday morning 
    * Constructions firms' share prices down more than 3 pct 
    * $80 bln maglev line to link Tokyo, Nagoya, Osaka 
    * The probe also to target Taisei - local media 
 
 (Adds Taisei comment, share prices, background) 
    TOKYO, Dec 18 (Reuters) - Tokyo prosecutors have raided the 
headquarters of at least two of Japan's biggest construction 
firms for alleged antitrust violations linked to $80 billion 
worth of magnetic levitation (maglev) train line projects. 
    Shimizu Corp  1803.T  and Kajima Corp  1812.T  were raided 
early on Monday morning, spokesmen for the two companies 
separately said. 
    Another construction firm, Obayashi Corp  1802.T , is 
already under investigation for suspected bid-rigging over 
maglev-related contracts.  urn:newsml:reuters.com:*:nL3N1OB11G 
    A spokeswoman for the Tokyo District Public Prosecutor's 
Office said it could not comment on individual cases. 
    The other member of the so-called "big four" group of 
Japanese construction firms involved in the maglev project, 
Taisei Corp  1801.T , had not been raided, a spokesman said. 
    Kajima shares plunged as much as 4.6 percent and Shimizu 
shares fell as much as 3.7 percent on news of the raids. Taisei 
shares were also down 3.3 percent on media reports it would be 
raided next. The Tokyo Stock Exchange was 1 percent higher. 
    The investigation relates to a 9 trillion yen ($80 billion) 
maglev line that is under construction linking Tokyo, Nagoya and 
Osaka. 
    Trains running at speeds of up to 500 km (311 miles) per 
hour, through tunnels deep under mountainous terrain, will cut 
train travel time between Tokyo and Nagoya to 40 minutes from 
100 minutes or more when operation begins in 2027. 
    The big four contractors have won roughly an equal number of 
orders for about 70 percent of the projects, according to 
Japanese media reports. 
 
     
     
     
     
($1 = 112.6900 yen) 
 
 (Reporting by Makiko Yamazaki; Editing by Stephen Coates) 
 ((Makiko.Yamazaki@thomsonreuters.com; 81-3-6441-1039;)) 
 
Keywords: JAPAN RAILWAY/PROBE