| NEC Corp., Japan's largest personal- computer maker, will be suspended from the Nasdaq Stock Market tomorrow, pending a delisting, after failing to submit an annual report to the Securities and Exchange Commission. Holders of the American depositary receipts, which account for 2.9 percent of NEC's outstanding stock, can trade the securities over-the-counter or convert them into common shares, according to a statement from the Tokyo-based company. A withdrawal from the Nasdaq would hurt the company's ability to attract investors in the world's biggest economy. More than 27 percent of NEC shareholders are non-Japanese. "It's not positive for NEC as a delisting may hurt foreign investors' trust in the company," Naoki Fujiwara, who helps oversee $3.24 billion at Shinkin Asset Management Co. in Tokyo. "It will have little effect on Japanese investors though." Shares of NEC fell 2.5 percent to 541 yen on the Tokyo Stock Exchange. The stock slid 4.9 percent this year, compared with a 4.6 percent drop in the Nikkei 225 Stock Average. The ADRs, equivalent to one share, rose 3 percent to $4.87, or 559 yen, yesterday on the Nasdaq. "`The suspension will have little effect over our operations," said Hideyuki Nakajima, a NEC spokesman. "We've taken all possible measures to protect ADR holders and we'll keep improving our accounting practices." NEC missed a deadline yesterday to submit a report with the required analysis of software, maintenance and service sales under U.S. accounting standards. The information is needed for the auditor to finish consolidated financial statements for the fiscal year ended March 31, 2006. |
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