Olympus Acknowledges $687 Million Payment to Financial Advisers

October 19 00:00 2011

New York, October 19 (RainbowNewsLine.com) – Ousted Olympus Corp CEO Michael Woodford’s claims, in his bitter dispute with other top Olympus management, have been vindicated with the announcement by the company Wednesday that it paid an unusually hefty $687 million fee to M&A advisers when it acquired British medical company, Gyrus.

On Monday, senior executive Hisashi Mori had said that the fees was half that amount, excluding payments made for the purchase of preferred stock in Gyrus. The company said in a news release that $443 million had been paid to financial advisers to buy back preferred shares.

Woodford said that he was advised by PriceWaterhouse Cooper that it is normal to expect a fee of 1 percent rising up to a maximum of 2 percent for such an acquisition. As such, the fee should have had been between $20 million and 440 million.

Woodford was fired last Friday after his dispute with the top management, which plunged Olympus’ share price and raised questions about corporate governance in Japan. On Wednesday, the shares plunged for a fourth straight day and have fallen about 45 percent since Woodford’s dismissal.

The stock was down 4.3 percent at 1,356 yen, falling as much as 6.4 percent at one point and underperforming a flat electric machinery subindex .IELEC.T.