World: After huge losses, Tepco’s future leads its stock to nosedive
- No one knows what will happen to Tepco in the future. We don’t even know whether the company will remain a private company or will the government take it over.
- Fujimaki Japan’s Takeshi Fujimaki • Explaining why Tepco’s stock went down significantly today — at one point as far as 28 percent — after a financial report that suggested the company was in very bad shape. Simply put, many investors don’t think Tepco is long for this world as a private company and will need significant help from Japan to survive. The company could face $7 billion in losses for the current fiscal year — already on top of $15 billion lost in the prior fiscal year, which ended in March. That’s before any compensation costs are taken into account, by the way. Investors are betting on bankruptcy and/or public-sector takeover. source