Is this statement true? I thought Olympus uses sensors from Panasonic. "Olympus also buys Sony image sensors for its cameras" from WSJ article. By KANA INAGAKI And ATSUKO FUKASE TOKYO—Olympus Corp. has hired SMBC Nikko Securities Inc. and Citigroup Inc. to help it raise fresh capital to restore its battered financial health, people familiar with the matter said Tuesday. The bankers are looking for companies that will take a stake in Olympus through a purchase of new shares and have talked to Sony Corp. among others, another person with knowledge of the matter said. A Sony spokeswoman declined to comment. But Sony has said in the past that it is interested in expanding its medical business, a field in which Olympus is strong through its manufacture of endoscopes, which are imaging devices used for internal diagnostic examinations. Olympus also buys Sony image sensors for its cameras. Olympus repeated an earlier comment from President Shuichi Takayama that all options for strengthening the company's finances are on the table. Olympus's search for a strategic investor comes as two groups of stakeholders push competing visions of how the Japanese company should recover from an accounting scandal involving its efforts to hide more than $1.5 billion in investment losses. Some of Olympus's investors have spoken out against the idea of raising capital by selling a stake to an outside company, warning that such a step could dilute both the value of their holdings and their voting influence at a shareholders' meeting. Olympus's main creditors, however, back the idea of a strategic investor, people familiar with the matter say. Those creditors, the biggest of which are Sumitomo Mitsui Banking Corp. and Bank of Tokyo Mitsubishi UFJ Ltd., have repeatedly said that they will continue their support for Olympus and are committed to remaining involved in the turnaround process. As of the end of September, Sumitomo Mitsui had extended roughly 220 billion yen ($2.82 billion) in bank loans and corporate bonds to Olympus, while Bank of Tokyo Mitsubishi UFJ had about 150 billion yen in debt exposure, according to figures provided by Olympus. An investment banker close to the matter said that the most likely scenario would involve a domestic strategic buyer—backed by one of Olympus's major lenders—taking a 20%-30% stake. Tokyo Stock Exchange rules allow the issuance of new shares to outsiders without current shareholder approval, as long as the issuance doesn't cause dilution of 25% or more of existing stakes. In an internal memo to employees dated Tuesday and viewed by Dow Jones Newswires, Mr. Takayama wrote that nothing specific has been decided regarding Olympus's capital-raising plan. The company will also implement 30%-50% pay cuts for board directors starting this month, he wrote. "The environment surrounding our earnings is very severe," he wrote in the memo. Not all Olympus investors oppose the idea of selling a stake to a strategic investor. Olympus shares rose 16% Tuesday, the highest they are permitted to increase under trading rules, after reports in the Japanese media that the company could be considering a type of share issuance that wouldn't dilute holdings right away. One domestic institutional investor said it wouldn't necessarily oppose the capital increase for dilution reasons if it can determine that a strategic partnership will lead to a medium- to long-term increase in Olympus's corporate value. But two of the biggest Olympus investors—Harris Associates LP and Southeastern Asset Management Inc., both based in the U.S.—have protested such plans and said Olympus doesn't need to raise capital immediately. Meanwhile, the head of the Tokyo Stock Exchange said Tuesday he is worried about the impact Olympus's accounting scandal is having on investment activity in Japan. "Investor confidence in our securities market is on the brink of a major crisis," TSE President Atsushi Saito said at a news conference. The exchange is examining ways to clarify the definition and role of independent directors to enhance corporate governance, he said.