Japanese construction firms targeted in fresh raids (updated)

OBAYASHI

19/12/2017 02:28

* Taisei and Obayashi raided over suspected antitrust 
violations 
    * Taisei shares fall 5.3 pct; Obayashi falls as much as 3 
pct 
    * Japan's "big four" construction firms all raided this week 
 
 (Adds company comment, share prices) 
    TOKYO, Dec 19 (Reuters) - Tokyo prosecutors raided the 
headquarters of Japanese construction firms Taisei Corp  1801.T  
and Obayashi Corp  1802.T  on Tuesday over alleged antitrust 
violations linked to $80 billion worth of magnetic levitation 
(maglev) train projects.  
    Shares in Taisei fell 5.3 percent to a more than 3-month 
low, while Obayashi shed over 3 percent before paring losses. 
The benchmark Nikkei average  .N225  was flat.   
    Taisei, one of the so-called "big four" of Japan's 
construction firms, is fully cooperating with the investigation, 
company spokesman Takayuki Renbutsu said.  
    Separately, prosecutors raided Obayashi's offices over 
suspected antitrust breaches, a company spokeswoman said. The 
firm is already under investigation for suspected bid-rigging 
over maglev-related contracts.  urn:newsml:reuters.com:*:nL3N1OB11G 
    The Tokyo prosecutor's office said it could not comment on 
individual cases. 
    The raids come after prosectors launched investigations into 
Shimizu Corp  1803.T  and Kajima Corp  1812.T , also on alleged 
antitrust breaches related to the maglev project. The train line 
will link Tokyo, Nagoya and Osaka.  urn:newsml:reuters.com:*:nL4N1OI1E3 
    Shimizu shares fell as much as 3.2 percent, while Kajima 
slumped as much as 5.6 percent, both extending losses from 
Monday.  
    Japan's large and politically influential construction 
industry has been a frequent source of scandals such as 
bid-rigging. 
 
 (Reporting by Thomas Wilson and Makiko Yamazaki; Editing by 
Stephen Coates) 
 ((T.Wilson@thomsonreuters.com; 81-3-6441-1598; Reuters 
Messaging: t.wilson.thomsonreuters.com@reuters.net)) 
 
Keywords: JAPAN RAILWAY/PROBE