Olympus to Sell Shares To Sony (SNE) And FujiFilm

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By Douglas A. McIntyre Updated Published

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

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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