Olympus to Sell Shares To Sony (SNE) And FujiFilm

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Olympus, its balance sheet hurt by money lost in fraudulent activity, will rebuild its balance sheet with a sale of $1.28 billion to partners Sony (NYSE: SNE) and FujiFilm. The scandal that has engulfed the company is not over. There is talk that the Olympus CEO who was fired by the board two months ago will return. There is also speculation that the entire board of the Japanese company will leave..

Reuters reports that

The report on the sale, which the Nikkei said could take the form of preferred shares, follows a warning from one of the camera and endoscope maker’s top foreign shareholders that the scandal-tainted board may try to retain control by issuing new shares to dilute the power of existing shareholders.

Olympus shares jumped following the report, as worries about share dilution from capital raising were offset by the potential benefits for the company’s financial health.

The Nikkei is a major Japanese newspaper