Renault falls after report on possible arrest in Japan of general manager Carlos Ghosn

Shares of Renault SA (RNLSY) fell on Monday as a result of a report by the Japanese newspaper Asahi that President and CEO Carlos Ghosn would be under arrest for allegedly violating the law. act on the financial instruments and the exchange of the country.

According to this report, published Monday, Ghosn, who chairs Nissan and chairs the president and CEO of Renault, underestimated its results in financial documents in Japan, where the headquarters of Nissan Motor Co. (NSANY) is located. ). The report adds that Ghosn would voluntarily speak with prosecutors in Tokyo. Renault executives in Paris were not immediately available to comment when contacted by The street.

Renault shares were down 5.4% in Paris following the report and had changed hands at 61.03 euros each, while German units Nissan had dropped 12.2% on the Deutsche Boerse.

Ghosn resigned from his Nissan CEO position last year, as the latter 's 64 – year – old was beginning to reduce his position as the world' s most visible auto executive, facing the odds. escalating tensions with the French government, which holds 15% stake in Renault, and the pressure of shareholders. either to merge its alliance with Nissan, or to deepen the links between the two manufacturers and Mitsubishi.

His payment in 2017, which included 7.4 million euros from Renault and 9.2 million euros for his last year at the helm of Nissan, was also approved as a result of a shareholder vote from 56% to 43%.

At the Renault board meeting in June, Ghosn got a new four-year term. He told the newspaper La Figaro in Paris that a plan for the future of the three-way alliance would be unveiled "well before the end of my term, or even rather early."

Nissan, the second-largest Japanese automaker behind Toyota Motor Co. TM, said its second-quarter profit, closed in September, had fallen 21 percent from the same period last year, for the second half of the year. to establish at 101.2 billion yen ($ 897 million). a decade – thanks in part to falling sales in Europe and North America.