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• Japan Tobacco, Battling Poison Dumplings, Scraps Sale (Update4) 

Japan Tobacco Inc. and Nissin Food Products Co. scrapped a $500 million merger of their frozen food units after the cigarette company was accused of selling poisoned China-made dumplings that sickened at least 10 Japanese.

Japan Tobacco scrapped an agreement to sell 49 percent in Katokichi Co. to the instant-noodle maker and then combine their frozen-food units, the three companies said through releases to the Tokyo Stock Exchange today.

Police and health officials from Japan and China are investigating the Chinese plant that produced the dumplings for clues on how the pesticide contaminated the products. The retreat from the merger is a blow to Japan Tobacco's plan to expand food sales and reduce its reliance on revenue from cigarettes in Japan, where the percentage of men that smoke has fallen by half during the past 40 years.

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