Olympus troubles....

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Anyone see Channel 4 news just now? Quite a fascinating interview with Micheal Woodford, who has just been sacked as chief executive.

Michael Woodford was sacked by Olympus on Friday just two weeks after the company promoted the Briton from his role as president.

Mr Woodford accuses the board of firing him for probing allegations of improper payments related to acquisitions.

Explaining the reasons for Mr Woodford's dismissal, Olympus says he had "largely diverted from the rest of the management team in regard to the management direction and method, and it is now causing problems for decision-making by the management team".

But Michael Woodford claims that unknown parties in the Cayman Islands received payments of $675m, or 36.1 per cent of the transaction price.

Olympus is threatening to sue Mr Woodford over his comments but the 51-year-old said he has nothing to fear: "If they would like to come to London, to the high court, and go through this I'd be more than delighted. I'd relish it. Please serve the papers on me tomorrow. I would love that."

According to an Olympus investor, who wishes to remain anonymous, Hisashi Mori, executive vice-president at Olympus, said: "He (Mr Woodford) has disclosed information that a director should not be revealing and it's a very serious problem for the management of the company."
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http://www.channel4.com/news/ex-olympus-ceos-concern-over-improper-payments

Shares have fallen 22% apparently since all this came out. Will be interesting to see how it develops.
 
The Today programme on Radio 4 this morning has reported that Mr Woodford has now taken his evidence to the Serious Fraud Office. Apparently the payments to the Cayman Islands came from Olympus Finance GB [?] so any wrongdoing is in the UK jurisdiction.

In response, the board of Olympus are apparently considering legal action against their erstwhile President and states that the "missing" sum is only half of the $675 million that he claims!

So that's alright then!

This one will run and run!
 
I read the letter yesterday, amazing stuff. He seemed to have given them the chance to deal with it in private but it would've needed the resignations of those responsible. I'm surprised he didn't see his sacking coming tbh going in boot first.

quote-

'In putting the company first, the honourable way forward would be for you and Mori-san to face the
consequences of what has taken place, which is a shameful saga by any stretch of the imagination. It is
clear that the current situation is now untenable and to move forward positively the necessary course of
action is for you both to tender your resignations from the Board. This approach would allow the situation
to be managed in a discreet manner and minimise the reputational damage to both Olympus and
yourselves. If your resignations are not forthcoming, then there is a principal obligation upon me in
respecting my fiduciary duties, to raise, with the appropriate parties, my fundamental concerns in relation
to the governance of the company'

Looks like they and the board didn't deem it 'shameful' enough to resign and will try to ride it out. Must be how the Japs do business :D
 
For anyone following the Olympian saga of ancient Gods made mad, todays's developments are here and here .
 
Yup, things are getting very exposed now and people are being shown the door!
 
I would think Yoshihisa Maitani is spinning in his grave.
 
I think the Olympus brand is more famous than Canon or Nikon in a lot of places, especially in the days of the OM and Pens, I just hope it isn't drowned in too much controversy.
 
According to Reuters, Olympus are holding a press conference about this in a little under two hours from now.
Their share trading was suspended after this announcement due to the rush by holders to sell...
 
Cripes! They've been sweeping losses under the carpet for 20 years with false accounts.
 
I should think the whole board needs to go to get any confidence back for investors
 
You mean is it good for them to see a competitor struggle or bad because they are partners in M4/3? Interesting one, I dunno....
 
I should think Panasonic is rubbing its proverbial hands together arkwright fashion....
 
Yves Geza said:
The Today programme on Radio 4 this morning has reported that Mr Woodford has now taken his evidence to the Serious Fraud Office. Apparently the payments to the Cayman Islands came from Olympus Finance GB [?] so any wrongdoing is in the UK jurisdiction.
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And a month later, today's news is that the SFO have announced they're opening a criminal investigation into Olympus.
 
Yves Geza said:
And a month later, today's news is that the SFO have announced they're opening a criminal investigation into Olympus.
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It was always going to happen, firms don't normally pay a "consultant" a 30% commission to a Caymans Island account.
 
Shame. They did make an Oggyproof camera (the OM1). I have had it since 1985 and it still works.
 
Oggy said:
Shame. They did make an Oggyproof camera (the OM1). I have had it since 1985 and it still works.
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Had they made OM-digital full frame with their great primes - instead of making payments to Caymans - they would be competing with the best, not the serious fraud office :lol:
 
there will be some jail terms being handed out for that little lot.
 
In light of the current fiasco with Olympus is it wise do we think to buy new Olympus gear at this time, guarentee's etc.
 
PDub said:
Its fine. Olympus are too big to go anywhere, worst than can happen for them is they get bought out buy someone like Fuji.
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^^^ This. Fuji would be good, or Olympus could sit nicely alongside quite a few of the major Japanese brands.

Personally, I don't think that will happen. The Olympus brand is strong and its products are selling well. If it was going the take-over route, I think we'd have heard more about that by now.
 
I have been following the Olympus 'scandal' with great interest after reading the Michael Woodford 12 page letter to the chairman asking him to step-down. It's unfortunate timing given that the m4/3 offerings are developing into a good system, but nevertheless I applaud him for his courage and integrity - let's hope we'll see less of these scandals bringing down great companies.
 
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