Reply #11: raid targeting a business maverick sparks sell-off [View All]

[papau]

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http://www.latimes.com/news/nationworld/world/la-fg-horie18jan18,0,7986516.story?track=tottext,0,1569258.story?track=tothtml

From the Los Angeles Times
THE WORLD
Investigation Wreaks Havoc on Tokyo Stocks
The exchange is forced to close early as a raid targeting a business maverick sparks sell-off.
By Bruce Wallace
Times Staff Writer

January 18, 2006

TOKYO — Spooked by a police probe into one of Japan's best-known Internet entrepreneurs, investors swamped the Tokyo Stock Exchange with sell orders today, driving the market down and forcing the world's second-largest exchange into an embarrassing early close.

The exchange's woes and the massive market drop rekindled questions about the durability of Japan's economic recovery, which had enjoyed a giddy run-up in stock values over the last several months.

The Tokyo market was shuttered 20 minutes before the regular close of business after a deluge of trade orders overwhelmed its computers. It was the second time since November the exchange had to close early for technical reasons.

The sell-off followed allegations that market darling Livedoor Co. and its maverick founder, Takafumi Horie, were under investigation for manipulating company stock.

Over the last few years, Horie built an online empire and became an icon of cool by doing business in Japan his own way, which is not, generally speaking, how business is done in Japan.<snip>