Takata Shares Tank After Report of Bankruptcy Consideration
Shares in Takata Corp fell as much as 9% on Tuesday after a Bloomberg report that some of the company’s bidders are considering the possibility of some form of bankruptcy proceedings for the troubled Japanese air bag maker.
Citing people familiar with the bidding process, Bloomberg reported on Monday that a bankruptcy option was being considered to rein in liabilities.
Tokyo markets were closed on Monday for a national holiday.
On Tuesday when markets reopened, Takata shares were down 7.8% at 390 at 01:23 GMT.
People with direct knowledge of the bidding process told Reuters earlier that Takata would take initial bids from potential rescuers, including Japanese chemical maker Daicel Corp, China’s Ningbo Joyson Electronic and global funds KKR & Co and Bain Capital LP, on Sept. 19.