Canon Stock Price Drops to More Than Two-Month Low After EU Threatens Huge Fine
By| July 7, 2017
Canon fined for not including 4K on the EOS 6D Mark II? </sarcasm>
Canon Inc’s stock fell to its lowest levels in more than two months on Friday after EU regulators said they may fine it up to 10 percent of annual revenue for jumping the gun in its acquisition of Toshiba Corp’s medical unit.
The EU Commission said it had reached a preliminary view that Canon breached rules by using a so-called “warehousing” two-step transaction structure involving an interim buyer to buy the company prior to obtaining relevant approvals.
Ten percent of Canon’s annual revenue would be roughly equivalent to $2.9 billion.
The $6 billion deal, completed late last year, raised eyebrows at the time due to the unorthodox method which allowed Toshiba, which was struggling for cash after an accounting scandal, to book proceeds in time for the financial year-end in March.
Rival bidder Fujifilm Holdings Corp had criticized it as a “mockery of the law”. Read the full story