Bloomberg News

Olympus Rises After Allowed to Maintain Listing: Tokyo Mover

January 24, 2012

Jan. 23 (Bloomberg) -- Olympus Corp., the Japanese camera maker that admitted an accounting fraud, rose the most in almost two weeks in Tokyo trading after it was allowed to keep its stock-market listing.

The shares gained 7.4 percent to 1,288 yen as of 10:04 a.m. on the Tokyo Stock Exchange, after jumping as much as 9.6 percent, the biggest intraday advance since Jan. 10. The stock was the largest gainer among members of Japan’s benchmark Nikkei 225 Stock Average, which slid 0.1 percent.

Olympus, the world’s biggest maker of endoscopes, was fined 10 million yen ($130,000) and told to submit annual reports on efforts to improve management, the stock exchange said Jan. 20. The exchange had put the Tokyo-based company on a watchlist to be delisted last year after admitting to inflating fees to advisers on the $2.1 billion acquisition of Gyrus Group Plc in 2008 and overpaying for three Japanese companies.

“Investors are reacting positively to the announcement,” said Mitsushige Akino, who oversees $600 million at Ichiyoshi Investment Management Co. in Tokyo. “It’s also expected that Olympus will now be able to make progress on capital alliance talks.”

Olympus had been reeling since Michael Woodford blew the whistle on inflated takeover costs after he was fired as chief executive officer Oct. 14. The allegations forced the company to reveal a 13-year, $1.7 billion scheme to conceal soured investments dating back to the 1990s and raised concerns among investors and lawmakers over Japan’s corporate governance rules.

--Editors: Robert Fenner, Terje Langeland

To contact the reporter on this story: Mariko Yasu in Tokyo at myasu@bloomberg.net

To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net


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