NEW YORK, April 1 U.S.-listed shares of
Panasonic Corp fell sharply on Monday after the Japanese
electronics giant said it will delist its shares from the New
York Stock Exchange.
In a press release, the company said "the continued listing
on the NYSE is not economically justified," as the trading
volume of Panasonic's American depositary shares (ADSs) accounts
for only a small fraction of the total trading volume of
Over the weekend, the Wall Street Journal reported a unit of
Panasonic Corp is under investigation by U.S. authorities
looking at whether the company paid bribes overseas to airline
employees or government officials to help land business.
A spokesman for Panasonic's North American operations said
the delisting has "no relation" to the news report.
According to the NYSE, voluntary delisting of ADRs fell in
the past few years, where as new listing have increased. In
2012, six foreign firms delisted their shares from the NYSE,
compared with 11 firms in 2009.
New listings of ADRs on the NYSE rose to 20 last year from
just 11 in 2009.
"I don't think there is a trend of delisting of ADRs. In the
past year or so, it's been pretty sporadic and company-specific
rather than a trend," said Bryant Evans, investment advisor and
portfolio manager at Cozad Asset Management in Champaign,
Illinois who manages ADR index and ADR stock portfolios for the
On Monday, the BNY Mellon index of leading American
depositary receipts fell 0.9 percent, while the
Standard & Poor's 500 index fell 0.5 percent.
The BNY Mellon index of leading European ADRs lost
0.4 percent, while the BNY Mellon index of leading Asian ADRs
fell 2 percent.
The BNY Mellon index of leading Latin American ADRs
fell 0.9 percent.