M & A wrap: Olympus hid losses
Japan’s Olympus admitted it hid losses on securities investments dating back two decades, bowing to weeks of pressure to explain a series of baffling transactions that have put the future of the firm in doubt.
The dark and sometimes dangerous triad of ties among gangsters, businesses and politicians has a long tradition in Japan, which helps explain why a scandal engulfing Olympus has stirred up media and market talk of possible yakuza links, despite company denials and a lack of evidence.
When is a merger-of-equals really a takeover? One easy way to tell is when the top brass get rich and undeserved paydays. There’s probably no better live example than the just-delayed sale of Massachusetts electric utility NSTAR, reports Breakingviews columnist Rob Cox.
Groupon is not necessarily doomed, but it does carry a lot of risk — risk that resides in the details and that grows more daunting as Groupon’s stock price rises, writes Kevin Kelleher.
“Zynga Inc. plans to proceed with its initial public offering after the Thanksgiving holiday on Nov. 24,” Bloomberg reports.
Hewlett-Packard payed $81 million to investment bankers for questionable advice, Andrew Ross Sorkin writes.