Japanese Government Backtracks Again: Edano Says No Plan To Nationalize TEPCO

Tyler Durden's picture

If there is one thing the Japanese authorities are consistent in, it is their complete lack of consistency. First the government leaks information that it will nationalize TEPCO, sending the market panicking and the stock (9501.JP) triggering circuit breakers after it goes bidless, and a few hours later after seeing the devastation this is doing on the market (Nikkei down 1.5%), it backtracks and says it was only kidding. From Reuters: "Japan's government is not considering nationalising Tokyo Electric Power Co , the operator of the stricken nuclear plant, Chief Cabinet Secretary Yukio Edano said on Tuesday." See, they were only kidding. Or, a very clever Japan has decided to not "nationalize" TEPCO in the same AIG was not nationalized, with a whopping 2% of the outstanding stock remaining in private hands following an infinity to one dilution.

The rest of the story is known by all at this point:

The Yomiuri newspaper, citing unidentified government sources, reported that the government would temporarily nationalise TEPCO, taking a majority stake, and would help manage it and help it pay compensation for damage caused by its Fukushima nuclear power plant after it was knocked out by a massive earthquake and tsunami on March 11.

That said, would one expect anything less from an administration that does not know the difference btween 10 million and 100K...