Livedoor Co., the Internet service provider whose founder, Takafumi Horie, faces prison for inflating profits, is providing a payday for Morgan Stanley, Goldman Sachs Group Inc. and Deutsche Bank AG.
As the largest shareholder of unprofitable LDH Corp., the holding company that controls Livedoor, Morgan Stanley will receive ¥15.3 billion in dividends this year, according to LDH financial statements released Nov. 17 and June 29. Goldman Sachs is getting ¥8.4 billion and Deutsche Bank ¥6.9 billion.
Morgan Stanley invested in Livedoor after the company was delisted in April 2006 after prosecutors charged Horie with fraud. The bet is paying off as LDH announced ¥85 billion in dividends this year, equivalent to 86 percent of Livedoor's market value when it stopped trading. Horie, who remains the second-biggest shareholder, won't get a payout.