UPDATE 1-Fujifilm to propose alliance with Olympus - Nikkei

Jan 26 (Reuters) - Fujifilm Holdings Corp will present a capital and business alliance offer to Olympus Corp arguing that its medical systems make it a good match with the manufacturer of digital cameras and endoscopes, the Nikkei business daily said.

Olympus, which has recently been in the news for its cover-up of losses on securities investments, will be getting an offer from Fujifilm soon, the daily reported.

Fujifilm, which enjoys a 30 percent share in the market for image-sharing systems in hospitals, believes that Olympus' endoscopes might give it a competitive edge, the report said.

Fujifilm is ready to fight any potential legal hurdles arising out of antitrust proposals due to the dominance enjoyed by the two companies in manufacturing endoscopes, Nikkei said.

It is still undecided as to what could be the ownership pattern for Fujifilm in Olympus, with the later not willing to give up more than 20-30 percent, the Nikkei said.