Capital Research Boosts Its Edison Investment

Los Angeles-based Capital Research & Management Co., parent of the American Funds group of mutual funds, has upped its stake in beleaguered Edison International Inc.

Capital, known for investing in “value” stocks, raised its stake in Edison to 11.2% at Aug. 31 from 7.7% at June 30, as the owner of California’s No. 2 electric utility struggled to stay out of bankruptcy, the fund firm said in an SEC filing.

Edison, parent of Southern California Edison, has racked up more than $5.2 billion in debts including funds borrowed to buy power under energy deregulation.

The state Senate is considering a rescue bill, approved by the state Assembly last week.

Edison shares have gained about 26% since June 30. On Monday, they rose 11 cents to $14.02 on the NYSE.