Troubled electronics maker Olympus may be able to recover from a $1.7 billion accounting fraud without having to plead for help.
The company hassome interest in an equity alliance from several investors including Sony, but its nominee president claims it might not need the extra help to bail it out.
Hiroyuki Sasa has been nominated to take control over Olympus next month. He told Reuters that he is still looking at partnership with rivals Fujifilm and Terumo.
However, he said that he might not need to go ahead with an alliance or any kind of share issue to strengthen the firm’s battered balance sheet.
The scandal meant that more than $1 billion in investment losses were hidden from Olympus’s accounts for 13 years. This left the company with a tiny amount of equity capital.
While Sasa said the company still had a “sense of crisis” he will aim to boost Olympus’ equity ratio from just four percent now to around 30-40 percent.
Sasa is not popular with foreign shareholders because he is an “old face” at the company. The foreign investors want a whole new management team.