Tokyo Electric Power Co.'s shareholders may be wiped out by the cleanup costs and liabilities stemming from the worst nuclear accident since Chernobyl.
The company faces claims of as much as ¥11 trillion if the crisis lasts two years and could lead to nationalization, according to Bank of America Merrill Lynch. Investors including Mitsushige Akino and Edwin Merner also urge shareholders to brace for further losses.
Tepco has tumbled 78 percent, the worst performer on the MSCI World Index, since the March 11 earthquake and tsunami knocked out cooling systems at the Fukushima No. 1 nuclear plant, causing radiation to leak. Should the crisis persist, the utility may be unable to repay bondholders and could be taken over by the government, Merrill said.