Hitachi hit by UK train doubts

Shares of Hitachi plunged seven per cent yesterday to 345 yen (260p) after reports that a £7.5bn UK intercity train deal may be cancelled as the new coalition government tries to cut down on spending. There are fears that Philip Hammond, the new transport secretary, may cancel or delay the deal given a spending squeeze at the transport department, which last week froze a separate train order. A Hitachi-led consortium was chosen as a preferred bidder in 2009.