Tokyo Electric shares plunge to new low
06 Apr 2011
Shares of Tokyo Electric Power Co fell again today, sliding as much as 19 per cent to their lowest in the company's history, raising concerns about its long-term viability as it struggles to gain control of a stricken nuclear plant.
According to analysts and investors the government would likely need to step in to save the utility with a bail-out or take it over completely, although the government's intentions for the company are not yet clear.
Concerns about whether the company, known as TEPCO, would be able retain its standing as a listed company, on the Tokyo Stock Exchange in the event of nationalisation have also been raised.
According to analysts there were a number of options on the table that potentially involved the government taking a larger stake. They add that the unknowns in this were whether that would involve delisting, how large the stake of the government would be and the price at which it would take back the stake.
Meanwhile, TEPCO has not yet determined the extent of the damage it sustained in the 11 March earthquake and tsunami, which knocked out a fifth of its power generation capacity.
The company is still engaged in finding ways to control radiation leaks and prevent further meltdowns of nuclear reactors at its Fukushima Daiichi plant 240km (150 miles) north of Tokyo.
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