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Deeper in the TCI

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  • Member since
    April 2007
  • 4,557 posts
Deeper in the TCI
Posted by Convicted One on Sunday, May 11, 2008 12:29 PM

For those of you who would like to know more about The Children's Investment Fund, and would be tolerant of a little "side trip" that does not directly involve trains, there is an excellent article  in the April 12 issue of the Economist magazine outlining  how TCI is  pulling the same stunt with One of Japan's largest electricity wholesalers, "J-Power".

TCI want's to double it's present stake in the formerly state owned electricity wholesaler, which has Japanese officials concerned that  they might attempt to put profit ahead of long term planning and investment.

Not surprisingly, TCI has called upon J Power to pay higher dividends while  at the same time taking on more debt.  (yikes!!)  Last month TCI released a 127 page plan calling for J Power to improve it's performance by selling power direct to large users, and to eschew minority stakes in it's own ventures abroad, for majority control and shedding it's cross-shareholdings.

 Japanese officials are (IMO) rightly concerned, J-Power  now owns the main power grid linking the big four islands, no telling what an entity such as TCI might try to pull off if given majority control.

 

  • Member since
    May 2003
  • From: US
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Posted by BaltACD on Sunday, May 11, 2008 3:36 PM

TCI is concerned about one thing, and one thing only!

TCI

The continued viability of the company, any company, after TCI cashes in their profits from looting the companys treasury and reserves will always be in jepordy!

 

Never too old to have a happy childhood!

              

  • Member since
    April 2007
  • 4,557 posts
Posted by Convicted One on Monday, May 12, 2008 4:34 PM
 BaltACD wrote:

TCI is concerned about one thing, and one thing only!

TCI

The continued viability of the company, any company, after TCI cashes in their profits from looting the companys treasury and reserves will always be in jepordy!

 

 

I agree with you wholeheartedly.  their encouragement for the utility to pay bigger dividends while taking on additional debt speaks loads about their true priorities

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