NEC_logo.pngFiling annual reports and auditing financial statements according to US GAAP standards is excruciating for all public companies but for NEC electronics, it’s become a debilitating factor in their American depository receipts trading on our exchange.
The company formerly known as Nippon Electronic Company’s ADRs will no longer be traded on the Nasdaq as of today. Not only are they unable to file their Form 20-F for the fiscal year rounding up in March ’06, they announced their US filings dating back to 1999 are unreliable.
According to a report by CNN Money, the NEC said a restatement (of their annual report) “is not practicable” because of the complexities involved in determining the necessary adjustments. We previously reported that the Europeans are also taking issue with our accounting principles and filing standards and realize we’re seeing a trend here.
Are our accounting standards REALLY that difficult? Is this our problem or theirs? Have our accounting rules become so arcane they’re driving companies away from us? A bunch of you have your CFA designation – tell us what’s going on here.
Nasdaq Takes Step to Delist NEC Corp. [Wall Street Journal]

NEC Will Not File Fiscal 2006 Report

JPMorgan is ready to love again after leaving Nasdaq when the US exchange suffered some anger management issues in its hostile bid for the London Stock Exchange last March. JPMorgan and Nasdaq are back together harassing foreign exchanges – trying to make the Scandinavian OMX dance for $3.7bn. Morgan Stanley, Credit Suisse and Swedish firm Lenner & Partners are advising OMX.
After the Nasdaq bid for the LSE was rejected, Nasdaq began accumulating LSE shares (a downward self-shame spiral). Nasdaq could not obtain enough shares (over 50%), or a positive enough self-image to cement control of the company, but became the LSE’s largest shareholder in the process, with over 29% of the company’s stock. JPMorgan backed out as Nasdaq’s advisor primarily because JPMorgan’s Cazenove divison is joint broker to the LSE.
Advisor reprises role after LSE conflicts [Financial News]