KKR no longer in bidding for Japan's Takata - source (updated)

Daicel

02/11/2016 11:09

(Adds details of presentations) 
    TOKYO, Nov 2 (Reuters) - U.S. buyout firm KKR & Co  KKR.N  
is no longer in the bidding to buy Takata Corp  7312.T , the 
Japanese parts maker at the centre of the world's biggest auto 
recall, according to a person briefed on the bidding process.  
    KKR did not attend meetings last week between bidders and 
the carmakers key to Takata's survival, the source told Reuters. 
The four other bidding groups include Bain Capital, a U.S. 
buyout firm that teamed up with Japanese chemical maker Daicel 
Corp  4202.T , sources have said. 
    Takata is seeking a financial investor to help it 
restructure as the industry faces liabilities of $10 billion or 
more from recalls involving defective air-bags which have been 
linked to at least 15 deaths worldwide. 
    A spokesman for Takata and investment bank Lazard Ltd 
 LAZ.N , which is advising Takata on the bidding, declined to 
comment. KKR officials could not immediately be reached. 
    Daicel and Bain's $3 billion bid, the highest in initial 
presentations, is backed by Takata's steering committee of 
Japan-based lawyers and consultants, sources have told Reuters. 
    In the New York meetings, the carmakers - who have so far 
borne the bulk of the recall costs - thought the best 
presentation was by Sweden's Autoliv Inc  ALV.N , a global rival 
for Takata in air bags, the source said. 
    It was followed by U.S. parts supplier Key Safety Systems, 
which is owned by China's Ningbo Joyson Electronic Corp 
 600699.SS , and private equity firm Carlyle Group  CG.O , the 
source said. Daicel-Bain was third.  
    The fifth bidder is U.S. parts maker Flex-N-Gate Corp, 
sources have said. 
    Takata wants to narrow the number of bidders to two or three 
by mid-month, but the talks have been complicated by differences 
such as whether to put Takata through some form of bankruptcy in 
the sale and restructuring, sources have said. 
 
 (Writing by Junko Fujita; Editing by William Mallard and Elaine 
Hardcastle) 
 ((813-6441-1840, junko.fujita@thomsonreuters.com, Reuters 
Messaging:junko.fujita.reuters.com@reuters.net;)) 
 
Keywords: TAKATA RESTRUCTURING/KKR