Japan's Terumo Corp. proposes a merger with Olympus Corp., aiming for a buyout to block rival companies' advances.
Terumo offered a $640 million investment into Olympus, sending OCPYNY shares up 6% to a closing price of $17.44 last night. Terumo confirmed that it had proposed an investment and is looking to form a committee to investigate a joint holding company.
Olympus, which has a corner on 70% of the endoscopic camera market, was rocked by a $1.7 billion accounting scandal exposed by former CEO Michael Woodford, who was sacked mid-October 2011 after only 2 weeks on the job.
If Olympus joins Terumo, which makes infusion systems, the resulting company would represent the 6th largest medical device company in the world, ranking just above Covidien (NYSE:COV) and just below Abbott (NYSE:ABT), according to a Terumo statement.
Terumo and Olympus are currently ranked 12th and 13th.
Olympus has been looking for strategic alliances to help it recover from a high-profile accounting scandal that sheared its stock value, split its board and executive leaders and launched a slew of regulatory investigations.
A federal jury in Texas clears Johnson & Johnson's DePuy Pinnacle hip implant in the 1st...
Edwards Lifesciences reports 3rd-quarter sales and earnings growth in excess of 20% and raises its...
A federal jury in Texas reportedly clears Johnson & Johnson's DePuy Pinnacle hip implant in the...
Federal auditors say the FDA needs to ramp up its cybersecurity efforts in order to deter hackers.