TOKYO (TR) – The president of Olympus Corp. told employees the company has enough cash to keep going amid the scandal involving billions in accounting irregularities, Bloomberg reported, citing an email sent on the Japanese firm’s internal website.
The camera and endoscope maker is under investigation after it admitted last week to hiding investment losses through inflated fees to advisers in connection to four acquisitions over the last two decades. One of those purchases included the takeover of British medical–instrument maker Gyrus Group PLC; advisors received $687 million in that $2 billion deal.
Olympus President Shuichi Takayama, told employees Wednesday the company has 260 billion yen ($3.4 billion) in cash and deposits and its businesses are expected to generate stable cash flow, according to the Bloomberg report.
Rating & Investment Information Inc. lowered Olympus’s long-term credit rating from A to BBB+ Nov. 8, following the admission of the accounting irregularities. The 92-year-old company has lost 70 percent of its value since the scandal first broke in October and over fears it may be delisted.
Agence France-Presse also reported Olympus’s top shareholder, Nippon Life Insurance Co., lowered its stake from 8.18 percent to 5.11 percent—citing the current situation.
Source: Bloomberg and AFP