Tokyo, Nov 21 (AFP) Japanese prosecutors are poised to file charges against car giant Nissan over the alleged falsification of financial reports linked to the arrest of chairman Carlos Ghosn, a report said Wednesday.

According to the Asahi Shimbun daily, which did not cite its sources, the Tokyo district public prosecutors office believes the automaker also has a case to answer in the under-reporting of the tycoon's compensation package over five years.

Both the prosecutors office and the company declined to comment on the report.

French and Japanese officials are scrambling to reassure investors on the fate of the Nissan-Renault-Mitsubishi Motors alliance as stocks plunged following the arrest of Ghosn, who is credited with overseeing a revival in the group's fortunes.

Prosecutors have reportedly negotiated a plea bargain allowing Nissan officials who cooperate with authorities to receive lesser charges or lighter penalties.

This is only the second time plea bargaining has been used since Japanese law changed earlier this year to enable it.

Local media said one of the officials who had been cooperating with prosecutors was a foreign Nissan executive in charge of legal affairs.

Ghosn's arrest has already sent shares in Nissan, Mitsubishi Motors and Renault diving this week -- although Nissan stock recovered marginally on Wednesday. (AFP) CPS

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