December 20, 2017 / 12:38 AM / 2 years ago

Taisei shares fall 4 pct after report on maglev project bid

TOKYO, Dec 20 (Reuters) - Shares of Taisei Corp fell more than 4 percent on Wednesday after a media report that the Japanese construction firm had asked rival Obayashi Corp to refrain from bidding on a project for magnetic levitation (maglev) trains.

The Nikkei business daily said Taisei had asked Obayashi not to bid for tunnel work in the $80 billion high-speed rail project, saying it and another competitor, Kajima Corp, planned to take the project. The work was eventually awarded to Taisei and Kajima.

Tokyo prosecutors are investigating the three firms, as well as Shimizu Corp, on alleged antitrust breaches related to the high-profile maglev project. The four companies have said they would cooperate fully with authorities, while declining to provide further details.

Shares of Taisei and Kajima were down 4.4 percent and 2.5 percent, respectively, in early trade, underperforming a roughly flat Tokyo market. (Reporting by Taiga Uranaka; Editing by Chang-Ran Kim)

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