The Children's Investment Fund (TCI), a UK hedge fund, gets tough with other investors of J-Power, the current target of their financial affections.

After trying to double their investment in Electric Power Development Co., aka J-Power and being denied by the Japanese government on grounds of national security, their plan B was to start a UK-Japan trade war. Their plan C seems to be more of the same.

The U.K. hedge fund has devised a scheme to to put more pressure on J-Power to release more value to shareholders by buying stakes in J-Power's major shareholders and compel them to help push around Japan's biggest power wholesaler. Bloomberg news reports on TCI buying stakes in both Mizuho Bank and construction firm Kajima Corporation.

The article states:

TCI is drawing attention to the fact that J-Power, Japan's biggest power wholesaler, has increased cross-shareholdings with business partners over the past couple of years, a practice it says diverts returns that should go to investors.

TCI is asking for voting proxies on seven agenda items, including a limit on cross-shareholdings and the re-appointment of Yoshihiko Nakagaki as president, at J-Power's June 26 annual general meeting.

With stakes of less than 5 percent respectively in Mizuho and Kajima, TCI is using the tried and true Japanese method of cross-shareholding against the firms. The method is normally used to strengthen and solidify a company by having major shareholders support and defend the company they have major stakes in against outside threats. The barbarians at the gate in this case, TCI, will try and influence Mizuho and Kajima now that they are partial owners of the two firms, to vote with them at the annual general meeting on June 26.

Sneaky but brilliant move.