Japan banks may hijack Olympus (Reuters)

David Lawson · Feb 21, 2012

Japan banks may Hijack Olympus
http://uk.reuters.com/article/2012/02/21/us-olympus-idUKTRE81G1R820120221

Among firms rumored to be interested in making a strategic investment in Olympus are electronics firms Sony and Panasonic Corp, rival endoscope maker Fujifilm Holdings Corp and another medical equipment firm, Terumo Corp. South Korea's Samsung Group has also been cited in media speculation as a potential partner.

justmeMN · Feb 21, 2012

The drama continues...

Whatever happens, Olympus is going to make an interesting Business Case Study someday.

HappyVan · Feb 21, 2012

Actually, the banks have been in the drivers seats since the crisis began.

A reorganization by the banks may be the best case scenario. The company's operations would continue as before. The new outside directors may actually be able to cut costs.

The troubling possibility is a de facto takeover by Sony. Not good for Oly's small imagining division. Son'y will not support a competitor to NEX. The imaging division will likely be sold ala Pentax.

LincolnB · Feb 21, 2012

Why is it none of this bothered you when you were pumping up the Pentax Q as the next great thing?

Why are you buying camera gear based on stock prices? You should consider buying camera gear based on camera prices and features instead. Maybe this approach of yours to photography explains the ho-hum nature of your own photographs.

HappyVan said:
Actually, the banks have been in the drivers seats since the crisis began.

A reorganization by the banks may be the best case scenario. The company's operations would continue as before. The new outside directors may actually be able to cut costs.

The troubling possibility is a de facto takeover by Sony. Not good for Oly's small imagining division. Son'y will not support a competitor to NEX. The imaging division will likely be sold ala Pentax.

HappyVan · Feb 21, 2012

LincolnB said:
Why is it none of this bothered you when you were pumping up the Pentax Q as the next great thing?

Never said that Q would be a great success. You had better find the quote to back that up.

I said that Q was different and cheap to produce. Would do well enough for Pentax.

LincolnB said:
Why are you buying camera gear based on stock prices? You should consider buying camera gear based on camera prices and features instead. Maybe this approach of yours to photography explains the ho-hum nature of your own photographs.

Some of us will invest a considerable amount in gear. Naturally, we should avoid companies that may fail. The 4/3 format is an appropriate lesson for the sentimental.

Of course, your investment is trivial. So, it doesn't matter to you.

Nothing wrong with a trivial investment if all you do is 'social' photography? LOL.

LincolnB · Feb 22, 2012

HappyVan said:
LincolnB said:

Why is it none of this bothered you when you were pumping up the Pentax Q as the next great thing?

Click to expand...

Never said that Q would be a great success. You had better find the quote to back that up.

Lemme see, I have to find the quote that I didn't say you made to stop you from doing something you didn't say you were going to do? LOL

HappyVan said:
I said that Q was different and cheap to produce. Would do well enough for Pentax.

Actually, you lied about the Q prices and artificially lowered them. Do you want me to find THAT quote?

HappyVan said:
Some of us will invest a considerable amount in gear.

Yes, and some people also think automobiles are a good investment. LOL

Usually their front lawn is littered with the next great things. They they spend more time polishing than driving. Hey look, it's a Ferrari!!!

When are you going to stop enlightening us with your knowledge of Nikkei stock prices and for once start taking some pictures that justify your 'considerable investment'?

HappyVan · Feb 22, 2012

LincolnB said:
Lemme see, I have to find the quote that I didn't say you made to stop you from doing something you didn't say you were going to do? LOL

All you have to do is to find the quote for "when you were pumping up the Pentax Q as the next great thing?" It should be a simple thing to do?

LincolnB said:
Usually their front lawn is littered with the next great things. They they spend more time polishing than driving. Hey look, it's a Ferrari!!!

In the first place, there are lots of accomplished photog who can make good gear sing. Apparently, you can't?

Photography is about more than the obvious. It is important to see with the mind's eye. That's where the art and poetry comes from. What are your prospects?

Finally, I don't need to show anything to you. I gave LTZ some tips about BIF because he asked. You're nowhere close to his level yet. LOL.

Mr.NoFlash · Feb 25, 2012

HappyVan said:
Actually, the banks have been in the drivers seats since the crisis began.

A reorganization by the banks may be the best case scenario.

I think that japanese banks are not bad to the japanese companies. For example there are rumors that Sony and Sharp debt could be degraded to junk status by the rating agencies. Then someone said "that does not matter - the japanese banks will support sony and sharp as they ever did". Japanese bank can live if a small part of the debt is lost.

HappyVan said:
The company's operations would continue as before. The new outside directors may actually be able to cut costs.

The troubling possibility is a de facto takeover by Sony. Not good for Oly's small imagining division. Son'y will not support a competitor to NEX.

Sony is not able to buy much of Oly, because Sony itself has some problems. Also Oly does not want that Sony takes over more than 20%. With 20% perhaps the next Oly sensors will be Sony ones instead of Panasonic ones what is not bad.

HappyVan said:
The imaging division will likely be sold ala Pentax.

Pentax still is a interresting camera maker despite bing sold 2 times within the japanese world.

--
cheers

Mr.NoFlash

Lakers · Feb 29, 2012

I don't understand the reasoning in this line of complaint:

J-banks are the biggest shareholders and the biggest creditors of Olympus, so of course they should have the biggest say in the future course of Olympus. Of course the interest of minority shareholders should be protected also, but nothing so far suggest otherwise.

I think the true reason for some of the whining from foreign shareholders is that Olympus is shunning their preferred bidder: private equity -- TPG made an offer a while ago and it went nowhere. PE firms have been frustrated in Japan for a long time, and it's not likely to change anytime soon since cash-rich Japan doesn't need their money.

justmeMN · Feb 29, 2012

Lakers said:
I don't understand the reasoning in this line of complaint:

"Foreign shareholder Indus Capital has said creditors such as Sumitomo Mitsui Banking could push Olympus into a big, dilutive sale of new equity, which would be a comfort for lenders but not necessarily for existing shareholders."

http://www.reuters.com/article/2012/02/27/us-olympus-idUSTRE81Q0BM20120227

So the banks get their money, but the share price goes down.

HappyVan · Feb 29, 2012

justmeMN said:
justmeMN said:

I don't understand the reasoning in this line of complaint:

Click to expand...

"Foreign shareholder Indus Capital has said creditors such as Sumitomo Mitsui Banking could push Olympus into a big, dilutive sale of new equity, which would be a comfort for lenders but not necessarily for existing shareholders."

http://www.reuters.com/article/2012/02/27/us-olympus-idUSTRE81Q0BM20120227

So the banks get their money, but the share price goes down.

Private equity is not to be trusted. They would prefer leverage to recapitalization. Makes the company more likely to fall.

We have seen too many examples of leveraged buyouts destroy good companies in the States.

The current game plan is to recapitalize the company to make it viable for the long term. This would be good for the imagining division which would get enough funds to be competitive. This is the best way of raising the share price.

Moreover, a strong new investor would be a valuable long term partner. Private equity will only bring a regime of cost cutting. Just enough for private equity to take profit and run.

Voff · Feb 29, 2012

David Lawson said:
Japan banks may Hijack Olympus
http://uk.reuters.com/article/2012/02/21/us-olympus-idUKTRE81G1R820120221

Among firms rumored to be interested in making a strategic investment in Olympus are electronics firms Sony and Panasonic Corp, rival endoscope maker Fujifilm Holdings Corp and another medical equipment firm, Terumo Corp. South Korea's Samsung Group has also been cited in media speculation as a potential partner.

Sounds like what happened with Pentax....

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Japan banks may hijack Olympus (Reuters)

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