TOKYO Dec 30 Shares in Takata Corp,
the airbag maker at the centre of the world's largest automotive
recall, jumped by a fifth on Friday, surging for a second
straight day, on news that criminal charges with the U.S
Department of Justice may be settled next month.
Takata air bag inflators have been linked to at least 16
deaths worldwide, including 11 in the United States. The
inflators can explode with excessive force and send metal
shrapnel flying inside a vehicle.
A source briefed on the talks told Reuters on Wednesday that
the charges could be settled before the Obama administration
leaves office next month.
That followed a report in the Wall Street Journal that
Takata is expected to pay a financial penalty in a range of high
hundreds of millions of dollars to at most about $1 billion.
Since then the stock has surged 41 percent, giving the
beleaguered airbag maker a market value of $610 million.
"Nothing has been resolved for Takata yet, but reaching a
settlement with the U.S. would help the company take the first
step forward," said Mitsushige Akino, chief fund manager at
Ichiyoshi Asset Management, adding that investors appeared to be
covering short positions.
Takata still faces potentially billions of dollars in costs
from recalls - about 100 million of its inflators have been
ordered to be withdrawn globally - as well as lawsuits.
It is seeking a financial backer to help it restructure. But
while some bidders want Takata to go through bankruptcy to wipe
out most of its debt, creditors such as Honda Motor Co
are likely to resist any bailout that includes bankruptcy as
they would have to shoulder significant losses, sources have
(Reporting by Ayai Tomisawa and Edwina Gibbs; Editing by