After confirming it had been involved in negotiations with Asean Resources over a possible acquisition, construction company Kumagai Gumi yesterday announced the talks had been terminated. Kumagai requested its shares be suspended on Thursday after they rose sharply as rumours of the potential acquisition leaked into the market. Yesterday's announcement was likely to lead to a sharp correction in Kumagai's share price following the collapse of the talks, analysts said. Kumagai said it was involved in no other negotiations or transactions of a price-sensitive nature. The company has applied to the stock exchange to resume trading today.