Sharp shares plunge 31 per cent on capital reduction reports

Shares in Japan’s Sharp plunged 31 per cent Monday after weekend media reports that the struggling electronics maker is planning a drastic capital reduction to help wipe away losses. Stocks in the company fell to 178 yen in early trade, down 80 yen from Friday - the maximum daily loss - although subsequently bounced back to 202 yen, down 21.7 per cent, by mid-morning. Weekend reports said Sharp plans to reduce its capital by 99 per cent to just 100 million yen ($835,000), the upper limit for the category of small and mid-sized companies with tax advantages. The Osaka-based company also plans to use surplus money squeezed out of the capital reduction to wipe away years of accumulated losses, the Nikkei and other media said.

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