RPT-UPDATE 1-TCI wants to raise J-Power stake above 10 pct-METI

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TOKYO Jan 16 (Reuters) - British hedge fund The Children's Investment Fund (TCI) has sought permission from Japanese authorities to raise its stake in Electric Power Development Co (J-Power) (9513.T) to above 10 percent, an official at the Ministry of Economy, Trade and Industry said on Wednesday.

The activist fund is J-Power's top shareholder with a 9.9 percent stake, and has been pressuring the electricity wholesaler to take on TCI executives as outside directors and introduce other measures it believes would boost corporate value.

The Nikkei business daily earlier quoted John Ho, the head of TCI's Asian operations, as saying in an interview that the fund wanted to boost its stake because J-Power's shares were undervalued and a bigger stake would help it improve corporate governance.

Japan's Foreign Exchange and Foreign Trade Act dictates that an overseas company looking to buy 10 percent more of a Japanese power company must obtain permission in advance.

TCI filed a request Tuesday with the Ministry of Economy, Trade and Industry, the Nikkei said.

Shares of J-Power jumped 3.8 percent to end the morning session at 3,850 yen, outperforming a 0.9 percent fall in the benchmark Nikkei average .N225. (Reporting by Nathan Layne and Aiko Hayashi)