Panasonic to provide Olympus with up to 50 billion yen in capital - Kyodo

Panasonic to provide Olympus with up to 50 billion yen in capital - Kyodo
Panasonic Corp is making final arrangements to provide up to 50 billion yen in capital to scandal-hit Olympus Corp, Kyodo news agency reported on Wednesday, a move that will make Panasonic the company's top shareholder.

Olympus, the world's leading maker of diagnostic endoscopes, is struggling to recover from a $1.7 billion accounting fraud uncovered last year by its then-CEO, Michael Woodford.

Local media last week reported that Olympus planned to shed 2,500 workers and sell an equity stake to either Sony Corp or Panasonic Corp to bolster its finances.

Panasonic, a leading electronics maker, has been hobbled by losses in its TV business, but there has been speculation that it is interested in expanding into the healthcare industry, which offers more stable revenues.

Panasonic aims to secure a new source of revenue by forming an alliance with Olympus in its mainline operation, Kyodo reported, quoting unidentified sources. Olympus, it said, would get access to funds for its restructuring as well as to marketing resources.

According to the sources, Olympus will issue shares to Panasonic in a private offering and the two companies are discussing a stake valued at 30 billion to 50 billion yen.

Both Olympus and Panasonic declined to comment on the report.

Copyright Thomson Reuters 2012

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Panasonic, Olympus, Camera
'NintendoLand,' 'Mario Bros.,' 'ZombieU' coming to Wii U
More games for mobile devices expected at E3 2012
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News


Follow Us
© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »