TOKYO (Reuters) - U.S. buyout firm KKR & Co (N:KKR) is no longer in the bidding to buy Takata Corp (T:7312), 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 (T:4202), sources have said.
Takata is seeking a financial investor to help it restructure as the industry faces liabilities of $10 billion (£8.15 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 (N:LAZ), which is advising Takata on the bidding, declined to comment. KKR officials could not immediately be reached.
Daicel and Bain's $3 billion (£2.45 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 (N:ALV), 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 (O:CG), 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.