Air-bag maker Takata is reportedly talking to potential investors about a bail out.
The Japanese company is facing billions in costs for fixing faulty inflators in millions of its airbags, which have been blamed for deaths and injuries.
US investment firm KKR is reported to have offered to take a 60 percent stake in Takata.
US fund KKR wants to rescue Takata https://t.co/yGWqulDCmn— Nikkei Asian Review (@NAR) May 26, 2016
There are also said to be other potential investors in the company, which has appointed an external steering committee to come up with a restructuring plan.
The reports caused Takata’s shares to surge by 21 percent, the daily limit, on the Tokyo stock exchange on Thursday.
However a New York Times auto industry correspondent poured cold water on the story saying she has been told there are no talks with KKR.
Two separate sources have told NYT this report is wrong — Takata is not in talks w/ KKRhttps://t.co/HRRLLjFtxH— Hiroko Tabuchi (@HirokoTabuchi) May 26, 2016