Yoshiaki Tsutsumi announces Wednesday that he will resign as Kokudo chairman.

The business tycoon says he'll step down as Kokudo chairman and the owner of the Seibu Lions.

Yoshiaki Tsutsumi said Wednesday he will resign as chairman of Kokudo Corp. to take responsibility for the revision of a financial statement at group firm Seibu Railway Co. that could result in its removal from the Tokyo Stock Exchange.

Tsutsumi, once one of Japan's most famous business tycoons, also said he will step down as owner of the Seibu Lions professional baseball team and relinquish all executive posts at group firms.

The railway company announced the same day that the revision of the financial statement, originally submitted in June, came after it learned that Kokudo and other group firms held a much greater stake in Seibu Railway than originally stated.

The statement, detailing the company's financial status as of the end of March, initially disclosed that 10 Seibu Railway affiliates held a 63.68 percent stake in the railway company, which is listed on the First Section of the TSE. The correct figure was actually 88.57 percent.

TSE officials suspect it could be a case of false reporting and plans to investigate whether Seibu Railway purposely misstated its financial position.

If deemed guilty, the company will see its stocks delisted from the bourse.

The TSE on Wednesday moved Seibu Railway to the liquidation post, where issues in jeopardy of being delisted are placed.

The railway company could also be held responsible for violating the Securities and Exchange Law.

Seibu officials said the company revised Kokudo's stake from 43.16 percent at the end of March to 64.83 percent. Other revisions were also made, they added.

Seibu said that at one point in 2000 its affiliates' stake had reached 91.19 percent.

TSE rules stipulate that companies are barred from listing if their affiliates hold 80 percent or more shares in it for a year or longer.

Seibu is suspected of having long been in violation of the rule.

Company officials said, however, that the percentage is estimated to have fallen to around 74.9 percent at the end of September this year.

Tsutsumi stepped down as chairman of Seibu Railway in April this year to take responsibility for a racketeering group payoff scandal in which Seibu executives were implicated.(IHT/Asahi: October 14,2004) (10/14)