SHARE IN Olympus rose the most in more than two months on optimism the Japanese camera maker will survive a delisting threat and after its auditors took legal action against executives over a $1.7 billion accounting fraud.
The company plans to overhaul management by April and is suing 19 current and former officials for hiding losses, it said. Olympus will probably be fined by the Tokyo Stock Exchange (TSE), rather than expelled from the world's second-biggest bourse, the Nikkeinewspaper reported yesterday.
“It’s looking much more likely Olympus will keep its listing now,” said Mitsuo Shimizu, an equity analyst at Cosmo Securities. “By suing, the company is making it clear who was responsible for hiding losses”, which may help the TSE in its decision to let it remain publicly traded.
Olympus has been reeling since Michael Woodford blew the whistle on inflated takeover costs after he was fired as chief executive officer on October 14th.
The allegations forced the company to reveal a 13-year scheme to conceal soured investments dating back to the 1990s and raised concerns among investors and lawmakers over Japan’s corporate governance rules.
Olympus jumped 20 per cent to 1,263 yen at the close in Tokyo, the biggest percentage gain since October 27th. The company’s auditors filed the suit, which includes claims against six current Olympus directors, at the Tokyo District Court on January 8th, Olympus said.
Directors involved in the scheme to hide investment losses over more than a decade caused 86 billion yen in damages to the company, according to the findings of an independent panel released yesterday.
“We accept the report with sincerity,” Olympus president Shuichi Takayama said in a note to employees. Mr Takayama and other directors, whom the panel said played roles in the cover-up, won’t take a “leading role” in naming new directors and drafting revival plans, he said.
Olympus is seeking as much as 3.6 billion yen in damages from executives including ex-chairman Tsuyoshi Kikukawa, it said. Mr Takayama, who took over from Woodford, is being sued for as much as 500 million yen, the company said. – (Bloomberg)
