Takata shares dive on bank­ruptcy re­port

The Myanmar Times - - International Business -

TAKATA shares dived yes­ter­day af­ter a re­port said some po­ten­tial buy­ers were con­sid­er­ing bank­ruptcy pro­ceed­ings for the em­bat­tled airbag sup­plier, which has been hit by the auto in­dus­try’s big­gest-ever safety re­call.

The Tokyo-listed firm plunged nearly 15 per­cent in morn­ing trade af­ter Bloomberg News said pri­vate-eq­uity firms and auto parts mak­ers are pre­par­ing of­fers for the com­pany, and some were con­sid­er­ing the dras­tic bank­ruptcy ac­tion to mit­i­gate the li­a­bil­i­ties.

It ended 13.23pc lower at 367 yen (US$3.60).

Ear­lier re­ports have also said Takata would take bids this week from suit­ors in­clud­ing US in­vest­ment funds Kohlberg Kravis Roberts & Co (KKR), Car­lyle Group and Bain Cap­i­tal, as well as Ja­panese parts man­u­fac­turer Dai­cel.

Takata will nar­row down the list of pos­si­ble buy­ers to one or two by next month with a re­struc­tur­ing plan due by the end of this year, Ja­pan’s Jiji Press said.

A spokesper­son for Takata de­clined to com­ment on the re­ports, say­ing an out­side com­mit­tee is draw­ing up a re­struc­tur­ing plan for the firm.

Some 100 mil­lion Takata airbags have been re­called and the firm is fac­ing law­suits, in­ves­ti­ga­tions and huge com­pen­sa­tion costs over a de­fect that can send metal and plas­tic shrap­nel from the in­fla­tor can­is­ter hurtling to­wards driv­ers.

The de­fect has been linked to at least 15 deaths and scores of in­juries glob­ally. –

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