Former Olympus CEO Michael Woodford has gotten his wish: the entire Olympus board resigned this week in the aftermath of the company’s epic financial scandal and stock tumble. They did, however, pick a new president and chairman before handing in their letters of resignation. Hiroyuki Sasa from the company’s medical equipment marketing division was picked for president, while banker Yasuyuki Kimoto has been chosen as chairman. The changes are expected to be finalized at an April 20th shareholders meeting. Sasa has promised to both win back public trust and to prevent another scandal from every occurring.

(via New York Times via Engadget)

Image credit: Olympus Film Camera by Matt Cunnelly

An update to the financial scandal over at Olympus, which has quieted down quite a bit in recent days: former Chairman and President Tsuyoshi Kikukawa has been arrested with six other people (including three former executives) for “suspected violation of Japan’s Financial Instruments and Exchange Act”. As you might remember, Kikukawa replaced ex-CEO Michael Woodford after Woodford’s abrupt dismissal and stated that the move was because Woodford — who’s from the UK — didn’t fit into the company’s culture. Less than two weeks later, Kikukawa himself stepped down as the company found itself in an international financial fraud case.

Olympus Ex-Chairman Kikukawa Arrested With Six Others After Payment Fraud [Bloomberg]

Update: Apparently Michael Woodford has being approached by Hollywood to discuss making a movie about his whistle blowing and the ensuing scandal.

Crippled by its recent financial scandal, Olympus is in need of a bailout and has been open to the idea of forming a strategic alliance with other companies. The latest news is that Sony is on the brink of acquiring a 20-30% stake in the beleaguered medical device and camera company, a sizable increase from the 0.03% it currently owns. The alliance would combine Sony’s expertise in making camera sensors with Olympus’ expertise in medical devices. Fujifilm has also been named as a company that’s interested in investing in Olympus, but Sony seems to currently be the clear front-runner.

(via Nikkei via 43 Rumors)

Image credit: EOS Bridge for NEX-5/NEX-3 by 246-You

Reuters is reporting that US-based investment firm TPG Capital has expressed interest in pouring $1 billion into Olympus in a joint deal, and has notified other possible suitors including Sony, Canon, Fujifilm, and Panasonic.

Nearly all of Olympus’ profits are generated from its dominant 70 percent share of the global market for flexible diagnostic endoscopes. The steady cash flow from that business has allowed it to prop up its digital camera business, which is on course to lose money for a second straight year.

TPG would consider taking over the other less desirable parts of the firm to facilitate a deal. This could include the digital camera operation, which is in need of a major overhaul, including job cuts, the person said.

It’s interesting that the camera division is one of the “less desirable parts” of Olympus, since that’s what most consumers know the company for.

TPG willing to invest $1 billion in Olympus [Reuters]

Image credit: OLYMPUS E-P1 by DORONKO

Black-suited investigators raided and searched 20 different sites today over Olympus’ ongoing accounting scandal. Among the sites searched were the company’s headquarters, the office buildings of subsidiary companies, and the homes of executives involved in the fraud. The company is also looking to raise cash by issuing $1.3 billion in new shares. Sony, Fujifilm, Panasonic, Samsung, and Hoya have been named as companies who are potentially interested in snapping up a piece of Olympus.

Olympus offices, homes raided in accounting scandal [Reuters]

Olympus’ stock price has been recovering quite nicely after an internal probe found no evidence of yakuza involvement (though they did slam upper management as “rotten”). However, rumors of possible takeover attempts persist. An article published by Bloomberg today reported that Fujifilm may be in the hunt for the beleaguered company:

Fujifilm, which makes equipment for medical scans, has been reported as a possible bidder for Japanese camera maker Olympus Corp. Yamamoto, who also is a board member at Fujifilm, declined to comment on a possible buyout of Olympus today.

Fujifilm Chief Executive Officer Shigetaka Komori said last month it was too early to discuss Olympus issues while the third-party panel was still probing the fraud at the camera maker.

Fujifilm has received a lot of praise lately for its sleek X series cameras, and could take another big step towards becoming a digital camera juggernaut if it somehow landed Olympus.

(via Bloomberg via Mirrorless Rumors)

Image credit: Olympus Trip XB401 by Arty Smokes (deaf mute)

It looks like Olympus ex-CEO Michael Woodford will be getting his wish after all as the Olympus scandal continues to unfold. A day after an independent panel issued a report that slammed the company’s top management as being rotten (though at the same time finding no links to organized crime), the entire board of directors has indicated that it will step down. Perhaps confident that the company will soon be back on the right track, investors have pushed the stock price back up to over ¥1,100 — up from its 52 week low of ¥424 back in early November.

Image credit: board room by @MSG

Olympus has been in the photography game since introducing its first camera back in 1936, but its future as a major player is at risk now that the company is caught up in one of the largest corporate scandals Japan has ever seen. According to Reuters, the company is reviewing its business structure, and there is speculation that it may be forced to sell off assets to survive.

While the company may be best known for its cameras, its actually built around a $2.6 billion endoscope business, of which it virtually holds a worldwide monopoly. Its camera business, on the other hand, is operating at a loss. According to investment bankers, other camera manufacturers are following the Olympus saga closely, but will likely hold off on making a move until things clear up more.

Olympus to review business structure amid scandal (via 43 Rumors)

Image credit: Olympus OM-30 SLR camera (OM-F) by csaveanu

Here are some developments in the ongoing Olympus scandal: investors and a former director are currently calling for fired CEO Michael Woodford to be brought back to clean house and right the ship. At the same time, The New York Times is reporting that Japanese investigators are still trying to understand a $4.9 billion hole in Olympus’ financial records, and believe that over half of that amount were paid to organized crime groups in Japan. More specifically, the company is accused of being linked to Yamaguchi-Gumi, the country’s most infamous yazuka organization.

The financial scandal rocking Olympus is one that the company may not survive. The company’s stock price plunged another 17% today, and the Tokyo Stock Exchange has informed the company that it will be delisted if it doesn’t meet a December 14th deadline for reporting earnings. The New York Times has a great piece on how Olympus got itself into this mess:

In June 1998, a disturbing rumor tore through trading floors in Tokyo: Olympus had suffered colossal losses on derivatives trading, punching a large hole in its balance sheet. The company’s shares spiraled down 11 percent in three days.

But Olympus categorically denied the rumor and went on to post record profits. All was well in the house of Olympus, the newly installed president, Tsuyoshi Kikukawa, assured investors.

Turns out the losses were in fact real. They were so colossal, however, that booking all of them could have pushed the company into bankruptcy. The management then decided to fudge their numbers in an effort to save the company.

Corporate Japan Rocked by Scandal at Olympus (via TOP)