Olympus cameras and medical equipment firm has
reported a $1.1bn reduction in net assets for the past five years,
threatening the future viability of the company and sparking
speculation the camera maker will need to merge in order to
survive.
The statement was offered just hours before
the Tokyo Stock Exchange deadline and ensures that Olympus, for
now, cannot be delisted.
Olympus’ auditor Ernst & Young ShinNihon
and former auditor KPMG ASZA are being investigated by authorities
over their audit work for the company.
Olympus’ most recent restatement, for the year
to 30 June 2011, showed an ¥ 84bn ($1.08 billion) reduction in net
assets. Olympus said as of the end of September its net assets were
just ¥ 46bn down from a restated ¥ 225bn in March 2007.
Olympus revealed a net loss of ¥ 32bn yen in
the six months to end-September.
The Olympus scandal came to light after
Michael Woodford, the ousted chief executive, prompted questions
over questionable acquisition deals, after being fired by the firm
two months ago.
Woodford went back to Japan on Tuesday in an
attempt to replace Olympus directors. The ousted chief executive
told Reuters his choice would be to avoid taking into any strategic
alliance with other companies. If he returned he would instead
recapitalise the camera and medical equipment maker within a few
months and would favour investment by private equity or a rights
issue to raise cash.
