Scandal-hit Japanese camera maker Olympus is in separate talks with Sony and Panasonic for a possible tie-up as it looks to rescue itself after a huge losses cover-up, a report said on Wednesday.
Michael Woodford, the sacked UK former CEO of Olympus, has settled his claim of unfair dismissal with the Japanese camera firm.
Woodford was fired last October after he questioned dubious payments made by the firm.
After initially denying the accusations, Olympus eventually admitted that it had hidden USD1.7 billion of losses over 20 years.
Scandal-hit Olympus on Monday reported a net loss of JPY33.08 billion (USD426 million) for the nine months to December amid a massive accounting cover-up that has tarnished the image of corporate Japan. For the full-year to March, the camera maker also said it expects a net loss of JPY32b, owing to one-off costs unrelated to the loss scandal.
Japan's Panasonic and South Korea's Samsung Electronics have each decided to propose capital ties with disgraced medical equipment maker Olympus, the Mainichi newspaper reported on Wednesday.
Other firms are already jostling to partner with Olympus, which has a 70 percent share of the global market for diagnostic endoscopes. Fujifilm has proposed an alliance while medical equipment maker Terumo has said it wants to strengthen ties.
Electronics giant Sony is also interested, sources have said.
Olympus has confirmed to the BBC that it is suing more than 10 current and former executives after a USD1.7 billion accounting cover-up at the firm.
It comes after an independent panel report looking into management involvement in the fraud.
The lawsuit, filed on 8 January, seeks up to JPY3.6b (USD46.8m) in damages.
Olympus is considering suing its executives after an accounting cover-up at the firm called into question corporate governance in Japan.
The camera company said it had received the results of an investigation into management responsibility for the scandal.
An investigative panel has found Japan's disgraced Olympus hid up to USD1.67 billion in losses from its investors, but is likely to say there is no evidence of involvement by organised crime in the cover-up, a source said on Monday.
The panel will also stop short of recommending criminal charges against executives involved in the accounting scandal, presenting only the facts and leaving Olympus to pursue this aspect, said the source familiar with the panel investigation.
The British former chief executive of Japan's Olympus emerged from a frosty meeting of directors on Friday, convinced its board will eventually quit over an accounting scandal engulfing the firm, but he said he was not begging to return to clean up the mess.
A Japanese government panel will propose mandatory appointments of outside directors on boards of large firms in the hope of averting the kind of accounting scandal that has engulfed Olympus.
But expectations of meaningful change are not high, and experts say the process in which companies pick outside directors may also need regulatory adjustment.
Japan's disgraced Olympus is preparing to take legal action, including possible criminal complaints, against any executives found responsible for the accounting scandal engulfing the firm, according to an internal staff email.
The memo, obtained by Reuters on Wednesday, was sent to Olympus employees the previous day by the firm's new president, Shuichi Takayama, who also vowed in the message to restore public trust in the once-proud maker of cameras and endoscopes.