Posted at noon, Monday, January 21, 2002

Daiei investors not satisfied

Bloomberg News Service

Daiei Inc. shares plunged 30 percent on concern its recovery plan isn't aggressive enough to allow Japan's No. 2 retailer to repay its debts.

The supermarket operator said on Friday it would close 50 of 321 stores and cut 17 percent of staff, or 6,000 jobs, over the next three years.

UFJ Holdings Inc. and other lenders said last week they may accept the plan and wipe out $3.18 billion in debt and preferred stock.

Daiei's announcement failed to impress investors, who had anticipated more drastic cost cuts. Bank stocks also fell on signs Prime Minister Junichiro Koizumi's drive to reduce bad debts was faltering.