TOKYO (Reuters) - Takata Corp’s 7312.T shares have lost nearly half their value in less than a week, hit by a report that bidders are seeking a court-mediated turnaround for the embattled Japanese air bag maker.
The stock has been hit by a glut of sell orders since the Nikkei business daily said on Thursday that Swedish air bag maker Autoliv Inc (ALV.N) and a group led by U.S. auto parts supplier Key Safety Systems, two bidding groups for Takata, would present proposals for a court-led restructuring. A Reuters source later confirmed the plan.
The stock lost 5 percent in Tuesday morning trade and is down 48 percent since Wednesday’s close.
When a stock is untraded due to a glut of orders, it is given a closing price by the Tokyo stock exchange that reflects the balance of buy and sell orders. When the glut is big, it will often be the daily limit allowed for the stock.
(This version of the story corrects last paragraph to show that not all untraded stocks end limit down)
Reporting by Tim Kelly; Editing by Edwina Gibbs