Bloomberg- The Children’s Investment Fund Management Ltd. called government rejection of efficient market practice “the real national security threat” after its bid to buy more shares in a Japanese power company was turned down.
“It’s a sad day for Japan. Hard-working Japanese people have been failed by the lack of leadership,” John Ho, head of the $10 billion hedge fund’s Asian division, said at a press briefing in Tokyo. “Japanese assets will also be undervalued because legitimate capital is being turned away.”
Japan advised the fund to withdraw a request to double its 9.9 percent stake in Electric Power Development Co., also known as J-Power, the nation’s biggest wholesaler of electricity. Some investors say the government’s decision demonstrates the world’s second-biggest economy isn’t yet fully open to overseas capital.
