Tokyo - Takata shares dived Tuesday (September 20) 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% 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 the morning 13.23% lower at 367 yen ($3.60).
List of buyers
Earlier reports have also said Takata would take bids from suitors including US investment funds Kohlberg Kravis Roberts & Co (KKR), Carlyle Group and Bain Capital, as well as Japanese parts manufacturer Daicel.
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Takata will narrow down the list of possible buyers to one or two by October with a restructuring plan due by the end of 2016, Japan's Jiji Press news agency said.
A spokesman 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 toward drivers and passengers when an airbag is deployed.
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The defect has been linked to at least 15 deaths and scores of injuries globally.