Olympus Shares Rise After Kyodo Reports Panasonic to Invest
Olympus Corp. (7733), the camera maker that admitted to a $1.7 billion accounting fraud, rose to its highest in more than a month after Kyodo news agency reported Panasonic Corp. (6752) will invest in the company.
Panasonic is in talks to invest between 30 billion yen ($380 million) and 50 billion yen in Tokyo-based Olympus and become the largest shareholder, the Kyodo reported today, without citing anyone. The world’s biggest maker of endoscopes has said it may shore up capital after writing down the value of assets last year because of the fraud.
“We’re not the source of information for the report,” Tsuyoshi Oshima, a spokesman for Olympus, said by phone. Atsushi Hinoki, a spokesman for Panasonic, said the Osaka-based company isn’t the source of the information.
Olympus will probably post net income of about 5 billion yen or 10 billion yen in the fiscal year started in April, the Nikkei newspaper reported today, without saying where it got the information. That compares with the 25 billion yen average of four analyst estimates compiled by Bloomberg. Olympus posted a loss of 49 billion yen last year.
Olympus is “considering” moves to raise its capital ratio, President Hiroyuki Sasa told reporters May 10. The company had a capital ratio of 4.6 percent as of March 31, it said then.
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