Nidec's share price rebounded. After reports that it was considering selling a subsidiary, the stock recovered from the sharp fall since the impairment announcement, while it remained at a low level compared with the previous week.
In the Tokyo market on the 30th, Nidec's share price rebounded to ¥2,355, up ¥105 from the previous day. Reports that it was considering selling a subsidiary prompted widespread expectations that this would strengthen its financial base.
However, the massive impairment charge announced on the 28th and the possibility of changes to management remained sources of concern for the market, and the stock had fallen to a level approximately 20% below the previous week's high of ¥2,941. It fell as low as ¥2,170 on the 29th.
Market participants said the difficulty of articulating a growth story through M&A is likely to become more pronounced as a result of this development.