Olympus: Gyrus Purchase Advisory Fee Not Unreasonably Expensive
October 26 2011 - 9:59PM
Dow Jones News
Olympus Corp. (7733.TO) Thursday defended payments for
controversial past acquisitions, saying financial advisory fees it
paid in the purchase of U.K. medical technology firm Gyrus Group
weren't excessive, and there was nothing illegal about the purchase
of four firms.
"The fees were determined at the contract signing, so we do not
believe they were unreasonably expensive," the company said in a
statement.
The acquisitions in question involve a $687 million payout to a
financial adviser based in the Cayman Islands for its assistance in
the $1.9 billion purchase of Gyrus in 2008. However, the fees the
company refers to in the statement don't include the bulk of the
$687 million in question.
Olympus also bought three small Japanese companies for a total
of Y73.49 billion ($966 million) between 2006 and 2008.
At a press conference Thursday, newly appointment President
Shuichi Takayama defended the purchases, saying the acquisitions
were all planned within the context of its medium- to long-term
strategy.
On Wednesday, Takayama took over after Tsuyoshi Kikukawa, a
47-year veteran of the maker of cameras and medical-imaging
equipment, resigned as chairman and president, citing investor and
client concerns in the two weeks since he dismissed Chief Executive
Michael Woodford.
But the scandal over expensive acquisitions and fees seems
unlikely to be defused by Kikukawa's exit after Olympus lost more
than half its market value since removing Woodford Oct. 14.
-By Juro Osawa and Kana Inagaki, Dow Jones Newswires; 813 6269
2794; juro.osawa@dowjones.com
Olympus (PK) (USOTC:OCPNY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Olympus (PK) (USOTC:OCPNY)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about Olympus Corporation (PK) (OTCMarkets): 0 recent articles
More Olympus Corp. ADS News Articles