Shares in scandal-hit Olympus rebounded 17.39 percent in Tokyo trade yesterday on optimism the company would meet a Dec. 14 deadline to report its earnings, easing fears the stock would be delisted.
Olympus shares closed at ¥540, a gain of ¥80.
The Tokyo Stock Exchange last week warned that Olympus would be delisted if it did not file its -already delayed earnings on time, in accordance with exchange rules.
Pressure has mounted on the precision equipment maker after it said investment losses dating back to the 1990s were covered up by funneling money through funds paid in four deals that brought scrutiny because of the size of payments involved.
Japanese Prime Minister Yoshihiko Noda and other officials on Friday spoke out as Tokyo tries to limit the impact of the fallout on Japanese markets, illustrating concern over how the scandal has tarnished corporate Japan’s image.
Shareholders have called for the reinstatement of ousted British CEO Michael Woodford, whose removal last month revealed a fee payment scandal that has wiped nearly 80 percent from the value of Olympus shares.
If Olympus fails to report its second-quarter earnings under the law by Dec. 14, its shares will be delisted soon after, the exchange said last week.
Delisting would effectively wipe out the value of the shares and trigger a wave of lawsuits, analysts say.
The four deals include a US$2 billion 2008 agreement for British medical-instruments company Gyrus, in which Olympus has admitted paying US$687 million to a little-known financial adviser based in the Cayman Islands.
The fee totaled more than a third of the company’s purchase price, much larger than the 1 or 2 percent normally charged in acquisition deals.
The deals came to widespread attention after Olympus ousted Woodford on Oct. 14.
Japan’s Financial Services Authority is investigating, amid reports the Tokyo Metropolitan Police has also started a full probe.
Former Olympus board director Koji Miyata said he has started a campaign to reinstate Woodford — he set up a pro-Woodford Web site on Saturday — calling his performance as president “an inconvenient truth” for the company.
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