Professor Elam

Monday Oct 24, 2011

Olympus Imaging , the camera and endoscope company, paid a fee equal to one third of the acquisition price for a British company. Olympus then switched auditors from KPMG to Ernst. Now an ousted CEO has revealed the extent of the blunder. The stock price has collapsed and the FBI is investigating. 

This is a lack of good governance. Continued revenue determines the success of a company. But a low stock price can attract take over parties. I am wondering if Olympus will end up selling the camera division to Canon or Panasonic.