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มีสิทธิ์โดน delist เหมือน kanebo นะครับ
Olympus shares plunge on cover-up revelations
HONG KONG (MarketWatch) Olympus Corp.s shares traded limit-down Tuesday with a loss of 29% after revelations that its senior management had covered up investment losses, with some suggesting the company may have to delist from the Tokyo Stock Exchange.
Ben Collett, head of Japanese equities at Louis Capital in Hong Kong, put the chance of delisting at 20%-30% and warned against seeing the shares recent dive as a buying opportunity.
If you are buying stock, you are buying faith in the regulators to sort out this mess and still provide value and maintain integrity of shareholder value, Collett said. I dont see any reason for that faith. From a speculative point of view, its reckless to buy the stock here.
Any decision to delist the stock which is also a component of the benchmark Nikkei Stock Average would be made by the Tokyo exchange.
Olympus shares JP:7733 -29.01% OCPNY -7.92% have tumbled more than 70% since the company ousted Michael Woodford from his role as chief executive on Oct. 14, after Woodford raised questions about advisor fees on previous Olympus acquisition.
Woodfords subsequent allegations touched off a scandal that led to regulatory investigations, and another probe by third-party panel set up by Olympus.
It also resulted in the Oct. 26 resignation of Olympus chairman and president Tsuyoshi Kikukawa, and on Tuesday, the ousting of executive vice president Hisashi Mori. Olympus also said Tuesday that Hideo Yamada, its standing corporate auditor, had likewise offered to resign.
Louis Capitals Collett said the scandal spells serious trouble for Olympus as a listed entity, as corporate fraud involving blue chip companies often turn out to be financial black holes.
All of the data that we have is based on accounts that we can no longer trust, Collett said.
Collett pointed to food and pharmaceuticals group Kanebo Ltd. as a previous example of corporate fraud leading to expulsion from Japans main stock market. The company was delisted in 2005 after regulators found it had overstated its profit by billions of yen during the previous five fiscal years, ending a 114-year history as publicly traded company.
In comments Tuesday, Olympus President Shuichi Takayama said the firm would do our utmost to avoid delisting even though we carried out inappropriate accounting, according to a Dow Jones Newswires translation. See Olympus chiefs comments on delisting.
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