DETROIT (Oct. 11, 2016) — The list of suitors for embattled automotive airbag and safety products supplier Takata Corp. is expected to be reduced to two following a meeting in New York or Detroit at the end of this month.
All 15 of Takata's major customers, including the Detroit 3, Takata executives and its advisory firm Lazard Ltd. and bidders are expected to determine the future of the Japanese supplier, which has been hammered by the largest recall in automotive history, according to a source familiar with the bidding.
The group will whittle the bids from four suitors down to two, as Takata edges closer to insolvency.
The meetings are expected to be in New York, but executives from the local auto makers have asked to move the agenda to metro Detroit.
Suitors for the Tokyo-based supplier of seatbelts and airbags include U.S. competitor Key Safety Systems Inc.; Daicel, a Japanese manufacturer of airbag inflators that's jointly bidding with private equity firm Bain Capital; Urbana, Ill.-based supplier Flex ‘N Gate and Swedish airbag maker Autoliv Inc., according to Bloomberg News reports and the source familiar with the matter.
The bid from Daicel and Bain Capital is for more than 300 billion yen ($2.9 billion), Reuters reported Oct. 11. It is backed by Takata's steering committee of Japan-based lawyers and consultants, said a person involved in the process and one who was briefed on the matter. That is the highest bid for Takata, the source briefed on the matter said.
Previous bidder KKR & Co. LP, a New York private equity firm, is believed to have been eliminated from the running, one source told Crain's Detroit Business, a sibling publication of Tire Business.