* Shares jump 16 pct, up by daily limit of 150 yen
* Takata still faces $10 billion in potential liabilities
* Faulty airbags linked to 16 deaths worldwide
(Adds a fund manager comment)
TOKYO, Jan 13 Shares in Takata Corp
jumped 16 percent on Friday after sources said the beleaguered
air bag maker will plead guilty to criminal wrongdoing as part
of a $1 billion settlement with U.S. authorities.
The settlement includes a $25 million criminal fine, $125
million in victim compensation and $850 million to compensate
automakers who have suffered losses from massive recalls, the
"Takata has taken a step forward regarding the airbag issue
with the U.S. Justice Department and this is being taken
positively by the market," said Mitsushige Akino, executive
officer at Ichiyoshi Asset Management but he added that the
firm's woes were far from over.
Takata still faces a potential $10 billion in liabilities
after recalling around 100 million defective air-bags linked to
at least 16 deaths worldwide, including 11 in the United States.
Shares in Takata surged 16 percent or by 150 yen, its daily
limit, to give it a market value of about $770 million.
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
Sources have also said that bidders for Takata include rival
inflator maker Daicel Corp in partnership with U.S.
buyout firm Bain Capital, U.S. air bag maker Key Safety Systems,
which is expected to team up with U.S. private equity firm
Carlyle Group LP, Swedish auto safety group Autoliv Inc
; and U.S. autoparts maker Flex-N-Gate Corp.
(Reporting by Junko Fujita; Additional reporting by Marika
Tsuji; Editing by Richard Pullin and Edwina Gibbs)