Japanese camera maker Olympus forced to probe high M&A advisory payments
22 Oct 2011
Scandal-hit Japanese endoscopes and camera maker Olympus Corp has been forced to set up an independent committee to probe irregularities in the payment of high advisory fees by it for past acquisitions.
Top investors in the Japanese camera maker sought an independent probe into several M&A deals entered into by the company between 2006 and 2008, when it had paid hefty advisory fees to little-known firms.
Michael Woodford, who was recently appointed CEO of Olympus, was fired last week days after taking over, as he raised objections to some of these deals and sought more details. The Tokyo Stock Exchange also sought details about the acquisitions.
Top shareholders who have made similar demands include Nippon Life Insurance Co, which with an 8.3-per cent stake in the company, is the largest shareholder; Southeastern Asset Management Inc; and Harris Associates LP.
''The committee needs to have truly independent members and have a globally recognised auditor to come in and do a detailed forensic review,'' said Josh Shores of Southeastern Asset Management.
Acknowledging that it had received letters from some shareholders seeking details about past acquisitions, Olympus said the probe committee would comprise outside experts including lawyers and accountants.
.webp)
