Tag Archives: Government to take over TEPCO

Japan to take control of Tokyo Electric

Japan will take control of Tokyo Electric Power Co (9501.T), the operator of a stricken nuclear plant, in the face of mounting public concerns over the crisis and a huge potential compensation bill, a domestic newspaper reported on Friday.

Shares of the company, also known as TEPCO, opened up more than 6 percent after the Mainichi newspaper said the government plans to inject public funds into the firm, although it is unlikely to take more than a 50 percent stake.

"If the stake goes over 50 percent, it will be nationalized. But that’s not what we are considering," an unnamed government official was quoted by the daily as saying.

TEPCO has come under fire for its handling of the emergency at its Fukushima Daiichi nuclear complex, triggered by a March 11 earthquake and tsunami that left more than 27,500 people dead or missing.

A series of missteps and mistakes, combined with scant signs of leadership, have undermined confidence in the company. TEPCO shares are down almost 80 percent since the disaster.

The Mainichi quoted a government official as saying: "It will be a type of injection that will allow the government to have a certain level of (management) involvement."

Read the rest of the story: Japan to take control of Tokyo Electrics.