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Olympus continues freefall

posted 21 Oct 2011, 03:19 by Mpelembe   [ updated 21 Oct 2011, 03:19 ]
Scandal-hit Olympus loses half of its market value; its biggest shareholders step up pressure to explain abnormally high acquisition fees paid in 2008.

ASIA-COMPANYASIA - Shares in scandal-hit Olympus fell for the sixth straight day Friday (October 21) after its biggest shareholders demanded the Japanese company take "prompt" action to ease investors' fears.

On the Tokyo Stock Exchange, Olympus shares were down four percent.

The endoscope and camera maker has lost nearly half of its market value over the last week since the company dismissed its top executive-turned-whistleblower, Michael Woodford.

Woodford was dismissed two weeks after taking over as CEO, after raising concerns over abnormally high acquisition fees paid by Olympus in 2008 when it purchased British medical equipment maker, Gyrus.

Olympus's biggest shareholders, Nippon Life Insurance, on Thursday (October 20) demanded the company take "prompt" action to address investor distrust of its corporate governance.

Toshi Maeda, Reuters.