Bangalore: Toshiba is the top contender on the list of companies interested in an equity tie-up with Olympus, reports Reuters.

Toshiba has joined various prestigious Japanese camera firms in a bid to buy shares of the accounting scandal hit, Olympus. Major players are also looking at acquiring the shares of Olympus which include – Sony, Fujifilm, Panasonic and Hoya. These firms are eyeing Olympus because of its lucrative endoscope medical equipment business. Toshiba is going to propose a business plan for its association with Olympus in the near future, reports Nikkan Kogyo.

Despite the accounting scandal of Olympus, it had a market share of 37.8 percent in the mirror-less camera segment of Japan in July, 2011. According to MarketWatch, Toshiba is keen at adding the expertise and experience of Olympus in the field of medical equipments. This will be an additional resource of income for Toshiba.

Olympus sued 19 of its executives, including board members, for about $50 million in the beginning of this year. Michael Woodford, former President and Chief Operating Officer of Olympus, was instrumental in bringing various accounting scandals of Olympus to the light. This was seen as the major reason which led to him being fired from Olympus. Wrongful acquisition of Gyrus Group and illegal acquisition of 3 other Japanese firms tarnished the name of Olympus and adversely affected its stocks. Present President of Olympus, Toshiro Shimoyama, and former President, Masatoshi Kishimoto, were on this shameful lawsuit.

Since, there will be major reconstruction in the top-level management of Olympus; this will be a golden opportunity for top Japanese camera organizations to buy a substantial stake in it. Ryosuke Okazaki, Director at ITC Investment Partners Corp., quoted, "Investors who have been holding short positions are buying them back heavily. Also, investors may be allocating funds into Olympus due to the expectation that the company will have a new governance."

Olympus is in dire of funding, which amounts to about $1.5 billion, and so it is reviewing the proposals of other leading camera firms. A corporate structuring will not only help Olympus in getting the required funds to redeem its financial situation but also in clearing and improving upon its corporate name and image, post the accounting scandal. Having a tie-up will also help the other company in terms of gaining from the knowledge and technology base of Olympus.