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Olympus shares suffer as former CEO goes on the attack
  • LPowellLPowell
    Breaking news on Olympus internecine scandal from dpreview:

    Former Olympus CEO Michael Woodford has launched a scathing attack on the company, following his removal from his post. Olympus had said Woodford was removed from his post over a difference in strategic direction between him and the rest of the Board of Directors. In a frank interview with the Financial Times, Woodford calls this 'utter nonsense' and states his belief that his removal relates to an investigation he had commissioned, into unusual payments and his suggestion that the board's Chairman and Vice Chairman should stand down over the issue. In response to suggestions that Olympus may try to prosecute him for disclosing this information, Woodford says: 'Bring it on.'

    http://www.dpreview.com/news/1110/11101815olyceostory.asp
  • 33 Replies sorted by
  • ahblezaahbleza

    And the latest news is that the Olympus executives who committed the fraud will not serve prison time. What a surprise.

    http://www.engadget.com/2013/07/03/olympus-chairman-and-others-sentenced/

  • jamjam

    Agree, except by all reports this guy was a lifelong and loyal Olympus employee who brought the information to the board and was fired. Only then did he attempt to change board...not quite the typical corporate raider Carl Icahn model of a hostile takeover. Perhaps the European press covered the story differently than US but that was the thrust here. I think Olympus makes very high quality products, as does Matsushita (aka Panasonic). I certainly spent enough time looking through an Olympus fiberoptic bronchoscope at airways!

  • Vitaliy_KiselevVitaliy_Kiselev

    @jam

    If you look at more detail, their managment is not unusual.
    Just this guy represented big clan who wanted to perform hostile takeover and used inside knowledge of technique used to cover losses to lower the cost of stock.

  • jamjam

    A commentary on the state of this particular company's "unusual" management style and the interesting relationship (admittedly not unique) between lending banks and stock. And considerably >0 fwiw.

  • Vitaliy_KiselevVitaliy_Kiselev

    No way I would ever invest in this company - no transparency in the Japanese market, not really a publicly traded company, rather a bank owned insider run enterprise. Not a bright future I fear....

    What the fuck is this?
    How much you invested in other companies, zero?

  • jamjam

    Used Olympus medical fiberoptic endoscopes for years - they created the market, made plenty of $ with their medical line, really went off track recently with this debacle. No way I would ever invest in this company - no transparency in the Japanese market, not really a publicly traded company, rather a bank owned insider run enterprise. Not a bright future I fear....

  • Vitaliy_KiselevVitaliy_Kiselev

    So whatever happened in this situation?

    Nothing happened.

    Olympus had been saved by other Japan banks and corporations and hostile takeover failed.

  • liquidifyliquidify

    So whatever happened in this situation?

  • MimirsanMimirsan
    @Stonebat
    Yeah I think this could well be the case...its tough times
  • stoneystoney
    @LPowel I doubt if Panasonic can buy Olympus camera division as Panasonic isn't making good money nowadays.
  • John_FarragutJohn_Farragut
    Oh, man, all these companies are dying. What have they done? Why can't there be companies that make great products and make money of it? These companies are wasting money and resources. They have so many divisions. They can't sustain them all. We need focussed companies that cater purely to one audience.
  • LPowellLPowell
    Hopefully Panasonic will be interested in Olympus' line of Micro/Four Thirds lenses...

    As it looks like KEH has cut prices on nearly all of their used Olympus Digital lenses:

    http://www.keh.com/search?store=camera&brand=Olympus-Digital&category=Zoom-Lenses&k=EmptyKey&s=1&bcode=DO&ccode=7&grade=Grade&sprice=0&eprice=0&r=SE&e
  • stoneystoney
    Who's gonna buy Olympus? Samsung?
  • Vitaliy_KiselevVitaliy_Kiselev
    Olympus released a statement this morning saying an independent investigation found advisory fees, takeover payments and writedowns were used to hide soured investments from the 1990s

    Exactly as in ALL major corporations and firms.
  • Vitaliy_KiselevVitaliy_Kiselev
    said three executives helped conceal decades of losses by paying inflated fees to takeover advisers, the first admission of wrongdoing since accusations from its former chief executive officer engulfed the Japanese camera maker in scandal four weeks ago.

    Former Olympus Chairman Tsuyoshi Kikukawa was involved in hiding losses at the company, said president Shuichi Takayama in a press conference in Tokyo today. Executive Vice President Hisashi Mori, who was fired today, and auditor Hideo Yamada were also involved, Takayama said. The company may take legal action against all three, he said.

    Olympus shares plunged by the daily limit and pulled other Japanese equities lower on broader concerns about accounting practices in the country, as Olympus made an about-face after weeks of denying any wrongdoing in the 2008 acquisition of Gyrus Group Plc and payments for three other takeovers.

    Exactly as I thought.

    :-)

    Poor managers had been named responsible for losses :-)
    No one know. Only three of them. :-)
  • raoulraoul
    Next round in the Olympus scam:
    http://www.bloomberg.com/news/2011-11-07/olympus-used-gyrus-fees-to-hide-losses.html

    "The Tokyo Stock Exchange said it’s considering moving the shares in the world’s biggest maker of endoscopes to a watchlist for possible delisting following today’s revelations"

    Some people are speculating about Olympus going bankrupt. Maybe we should start a fundraiser campaign to buy their camera department and make Vitaliy Kiselev head of the r+d department to develop the ultimate 4k 120 fps m43 cam :-)

    They already have very nice lenses, just a great video Pen is lacking.
  • Vitaliy_KiselevVitaliy_Kiselev
    If you look at PDF it become clear why the sum is so high.
    Because they got options on markets lows and paid for shares rise on markets high.
    Other reason can be that money could be used for financing some divisions outside japan and save some tax money.
    This motherfucker clearly knew about this long before 2011.
  • soundgh2soundgh2
    http://uk.reuters.com/article/2011/10/20/uk-olympus-interview-idUKLNE79J04F20111020

    Somethings afoot
  • Vitaliy_KiselevVitaliy_Kiselev
    Some Olympus response

    http://www.olympus-global.com/en/corc/ir/tes/pdf/nr111019.pdf

    Looking to it I suppose what mr. Woodford had some clear damage intentions.
  • brianlucebrianluce
    @LPowell
    Just on limited experience, but I too have observed this to be a particularly unsavory biz.
  • stoneystoney
    Also... what a timing. November 3rd is approaching. NEX-7 and Canon whatever are coming. Olympus and Panasonic seemed having the best chance to steal the show in 2012... GFX1, AF200, GH3, Olympus pro m43 body, etc. But this will damage Olympus... possibly m43.
  • Vitaliy_KiselevVitaliy_Kiselev
    >what is it that's "unclean" about selling medical equipment

    It is very dirty business. Your connections, unofficial payments to medics and clerks are frequently more important than anything else. Margins are big, normally allow up to 30% of back payments.
    Same thing with manufacturing equipment. This is how Siemens work in all countries.
  • LPowellLPowell
    @Vitaliy_Kiselev
    Not disputing your suspicions, which do sound plausible, but what is it that's "unclean" about selling medical equipment?
  • Vitaliy_KiselevVitaliy_Kiselev
    >This could be a hostile takeover.

    I am talking about the same.
    Giving such interviews could have only one goal.
    Only total ass could belive that guy who sold medical equipment for 20 years started to be big fan of "clean business"
  • stoneystoney
    Mr.Woodford looks like Angilo "Tan Man" Mozilo.
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