Toshiba shares tumble on problems with US nuclear projects

San Francisco

TOSHIBA Corp plunged by the daily limit in Tokyo as the once heralded US nuclear renaissance is turning into a nightmare for the Japanese company.

The shares fell by 20 per cent to 311.6 yen in Tokyo, following a 12 per cent drop on Tuesday. Toshiba said it may have to write down billions related to an acquisition made by its US unit Westinghouse Electric that was geared towards completing the newest generation of reactors at two US facilities. The projects, overseen by utilities Southern Co and Scana Corp, are years behind schedule and billions of dollars over budget.