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Friday, April 1, 2011

UPDATE: Government Takes 50% in Tepco ?( TYO:9501) (PINK:TKECF)



NEW YORK - The Japanese Government has just announced a 50% stake in Tokyo Electric power. Tokyo Electric known as Tepco is Asia's largest utility provider. The government said that it has no plans at this time to nationalize the company. An official said "If the stake goes over 50 per cent, it will be nationalised. But that's not what we are considering," the official said.


However other reports state that the company has not yet asked for assistance.

The company has come under fire since March 11, when an earthquake and tsunami knocked out cooling systems at the plant causing a potential meltdown. It has been confirmed that 3 of the 6 reactors at the Fukushima plant have suffered partial meltdowns.

The stock is down 80% since the start of the crisis. Liabilities for compensation could be in the trillions of yen.

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