Olympus Corp. paid almost 60 percent more than the total market value for British medical equipment maker Gyrus Group PLC, a report by a foreign-affiliated auditing company showed Saturday.
The camera and medical equipment maker spent around ¥210 billion to purchase Gyrus in 2008, 58 percent more than the firm's market value at the time, according to the report.
The auditing firm examined Olympus' assets at the request of Michael C. Woodford, who was dismissed as Olympus president in October. He has submitted the report to British investigative authorities as evidence of suspicious financial transactions at the company.
A third-party panel set up by Olympus is also investigating why the company purchased Gyrus at such a high price, according to informed sources.
Olympus paid ¥66 billion as a retainer to a financial advisory firm in connection with the acquisition. The money is believed to have really been used to cover off-the-book investment losses.
Some observers say purchasing Gyrus at such a premium may have been part of the scheme to conceal the past huge losses.
Olympus has said it aimed to enhance its endoscope-related business through the acquisition.
In corporate mergers and acquisitions, it is usual for targeted firms to be bought at a premium of 20 to 30 percent of their market value. In the case of Gyrus, this would have been around ¥170 billion.