Reuters: Market News: TEPCO decides to ask govt for $12 bln injection-Kyodo

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TEPCO decides to ask govt for $12 bln injection-Kyodo Mar 29th 2012, 01:10 TOKYO, March 29 | Wed Mar 28, 2012 9:10pm EDT TOKYO, March 29 (Reuters) - Tokyo Electric Power Co , troubled operator of the tsunami-hit Fukushima nuclear power plant, formally decided on Thursday to ask the government to inject 1 trillion yen ($12.06 billion) in tax money to keep it afloat, Kyodo news agency reported, amid doubts about the future of Japan's nuclear energy policy. The government is expected to obtain an initial majority stake in the struggling utility in return for the fund injection, with an option to boost the stake to two-thirds if the firm, known as Tepco, drags its feet on corporate reforms, a source with knowledge of contentious talks on the matter said. Trade Minister Yukio Edano, who is responsible for approving a public fund injection, has said he wants the government to have a significant say in managing Tepco, but the two sides have been squabbling over just how big the government stake should be. The request paves the way for Tepco and a government-backed bailout body to finalise a business turnaround plan to be submitted to Edano soon. Submission of the plan has been delayed by the search for a new chairman, who will face huge hurdles to restore Tepco's profitability, including doubts over whether it can restart off-line reactors amid public concerns over nuclear safety. Last year's earthquake and tsunami caused reactor meltdowns at Fukushima, triggering a radiation crisis that resulted in mass evacuations and widespread contamination. A Tepco spokesman said there had been a board meeting but could not confirm a decision had been made. Link this Share this Digg this Email Reprints

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