Reuters: Global Markets: Olympus slides seven percent on possible violations report

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Olympus slides seven percent on possible violations report Aug 1st 2012, 02:51 Tweet Share this Email Print Related News UPDATE 2-Terumo sues Olympus over lost shareholder value 8:51am EDT Nikkei bounces on short covering but euro worries sink Canon Thu, Jul 26 2012 Terumo's proposal intensifies race for Olympus tie-up Thu, Jul 26 2012 Analysis & Opinion Bloomberg with attitude How Bloomberg can still run Washington Related Topics Hot Stocks » Asian Markets » A man sits near a logo of Japan's Olympus Corp at the company headquarters in Tokyo June 19, 2012. Credit: Reuters/Yuriko Nakao TOKYO | Tue Jul 31, 2012 10:51pm EDT TOKYO (Reuters) - Shares of Olympus Corp (7733.T) fell as much as 7 percent on Wednesday, after a report that the U.S. Department of Justice is looking into possible violations by the scandal-tainted firm in a doctor-training program in Brazil and in marketing operations in the United States. Bloomberg news agency on Wednesday quoted Chairman Yasuyuki Kimoto as saying in a July 23 interview: "We understand DOJ is trying to gather lots of information on us". Olympus confirmed the comments made by Kimoto to Bloomberg. The slide in the share price also comes after Terumo Corp (4543.T) filed a lawsuit against Olympus seeking damages for lost shareholder value, escalating a tussle with the endoscope maker over a tie-up proposal. Terumo, a medical device maker, which holds a 2.5 percent stake in Olympus, has proposed investing some $640 million in cash-strapped Olympus. But Olympus has also attracted other bidders including Sony Corp (6758.T) and Fujifilm Holdings (4901.T). Kimoto told Bloomberg that at issue in Brazil is the way that the company handled doctors expenses for travel, meals or entertainment. He was also quoted as saying that the enquiries into Olympus' U.S. marketing operations may be part of a wider industry probe. Shares in Olympus have shed nearly 40 percent since last October, when the company's former CEO Michael Woodford blew the whistle on a decade-long accounting fraud at the firm. Terumo's lawsuit is the first made by an institutional shareholder against the scandal-tainted firm, which admitted last year it used improper accounting to conceal huge investment losses under a scheme that began in the 1990s. Terumo said it would sue Olympus under Japan's Financial Instruments and Exchange Act for failing to disclose its accounting fraud before signing a business and capital tie-up with the medical equipment firm seven years ago. Olympus allocated a little over 6 million shares to Terumo through a third-party allotment in August, 2005. (Reporting by Junko Fujita and Dominic Lau; Editing by Michael Watson and Edwina Gibbs) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints Comments (0) This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

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