2nd UPDATE: Olympus' Kikukawa Resigns As Chairman, President

-Olympus says Tsuyoshi Kikukawa has resigned as chairman and president

--Shuichi Takayama replaces Kikukawa as president, effective immediately

--Kikukawa's resignation comes amid questions about the company's past deals raised by its British former president

(Adds Woodford's comment in 7th and 8th paragraphs)

By Juro Osawa

Of DOW JONES NEWSWIRES

TOKYO (Dow Jones)--Olympus Corp. (7733.TO) said Wednesday that Tsuyoshi Kikukawa has resigned as chairman and president and becomes a director without representative rights, effective immediately.

The decision, made at a board meeting earlier in the day, comes as the Japanese maker of medical equipment and cameras faces a major crisis because of questions about acquisitions in recent years raised by the company's British former chief executive who was removed from all executive posts Oct. 14.

Olympus said in a statement Kikukawa is stepping down as the company takes into account "the fact that a series of media reports and declines in share prices arising from the change in presidency Oct. 14 have caused concerns and inconveniences in various places such as our customers, business clients and shareholders."

Director Shuichi Takayama replaces Kikukawa as president, the company said.

Former CEO and president Michael Woodford has said he was fired after raising questions about payments relating to acquisitions made before Woodford joined the board. The company said Oct. 14 that Woodford was removed due to "major differences in management style."

The payments questioned by Woodford include the acquisitions of small Japanese companies for a total of Y73.49 billion between 2006 and 2008, and $687 million paid to a company that provided financial advice in the 2008 acquisition of U.K. medical technology firm Gyrus Group Ltd.

Whether Kikukawa's resignation alone can really change the company is unclear, said Woodford in a phone interview shortly after the company released the statement.

"All board members acted as one entity," he said, noting that Takayama, the new president, was one of the board members who voted to remove Woodford.

Separately, a person familiar with the matter said Japan's securities watchdog is monitoring whether Olympus has appropriately disclosed information on past M&A activities in financial statements.

"The SESC is closely watching the company's disclosure-related activity," the person said.

The Securities and Exchange Surveillance Commission said it cannot comment on individual cases or companies.

Olympus also said in its disclosure that Takayama only holds Y16,700 shares in the company.

In trading on the Tokyo Stock Exchange, Olympus shares closed down 7.6% at Y1,099.

-By Juro Osawa, Dow Jones Newswires; 813 6269 2794; juro.osawa@dowjones.com