Both Mitsubishi and Hitachi’s stock Drop after Talks stall

The sources also said that the chance of a full merger between Hitachi, Japan's biggest industrial electronics firm, and Mitsubishi Heavy, the nation's leading heavy machinery maker, appeared slim.

The suspension of talks comes after news first surfaced on Thursday that the two firms were discussing the combination of some businesses such as next-generation power operations and smart grids, with an eye towards a possible merger further down the road.

Yesterday, Hitachi shares closed up 1.7 percent at 471 yen after rising as much as 3.8 percent. Mitsubishi Heavy shares rose 3.4 percent after jumping as much as 5.4 percent.

(source: www.reuters.com)