Japan to take control of Tokyo Electric Power: report (Reuters)

Thursday, March 31, 2011 4:01 PM By dwi

TOKYO (Reuters) - TOKYO, Apr 1 (Reuters) – Japan's polity plans to verify curb of Tokyo Electric Power Co (9501.T), the cause of a stricken thermonuclear power plant, by injecting public funds, the Mainichi production said on Friday.

But the polity is implausible to verify more than a 50 proportionality wager in the company, an unnamed polity authorised was quoted by the regular as saying.

"If the wager goes over 50 percent, it module be nationalized. But that's not what we are considering," the authorised was quoted by the paper as saying.

The company, also known as TEPCO, has become low fire for its handling of the crisis at its Fukushima Daichi thermonuclear complex, triggered by a March 11 seism and tsunami that mitt more than 27,500 people departed or missing.

Mainichi quoted an unnamed polity authorised as saying: "It module be a identify of shot that module allow the polity to impact a destined verify of (management) involvement."

A program of missteps and mistakes, compounded with scant signs of leadership, impact boost undermined certainty in the company. Poor act has led to some heated exchanges in media conferences as journalists demanded information.

TEPCO could face rectification claims superior $130 1000000000 if Japan's worst thermonuclear crisis dragged on, Bank of America-Merrill Lynch estimated this week, boost fuelling expectations Japan's polity module travel in to save Asia's largest utility.

Investor anxiety most the forthcoming of Tokyo Electric mounted after its president, Masataka Shimizu, was admitted to hospital and the consort said on weekday that 2 1E+12 yearning ($24 billion) in crisis loans from Japan's major banks would not cover its mounting costs.

Liabilities for rectification claims alone could be up to 11 1E+12 yearning ($133 billion) -- nearly quaternary times TEPCO's justness -- if the thermonuclear crisis drags on for digit years, an shrink at Bank of USA Merrill Lynch wrote in a report.

TEPCO shares are downbound nearly 80 proportionality since the disaster.

Bank of America-Merrill Lynch said shareholders were very probable to verify a bounteous impact and a fast partitioning of the crisis was the exclusive artefact to ready costs down.

If the situation crapper be turned around within the next digit months, rectification costs may be less than 1 1E+12 yen. Costs module uprise to 3 1E+12 yearning if it drags on for six months, shrink Yusuke Ueda wrote.

Experts, however, say a test partitioning of the thermonuclear hardship is probable to verify decades and there could be some boost setbacks.

TEPCO could burn finished 2 1E+12 yearning in most a year, said CLSA justness shrink Quaker Bowers, as it pays extra for render to run its thermal plants, among other costs.

TEPCO has around $91 1000000000 in debt including some $64 1000000000 in bonds. That excludes most $24 1000000000 recently secured in loans from domestic lenders.

At the modify of December, TEPCO had justness of most $35 billion, its accounts show.

(Reporting by Yoko Nishikawa, Kazunori Takada and Taiga Uranaka; Writing by histrion Yates; Editing by Alex Richardson)


Source

0 comments:

Post a Comment