TRW Automotive Holdings, one of the largest auto safety parts makers, has received a preliminary nonbinding offer to be acquired.
TRW, based in Livonia, Mich., did not identify the suitor, but according to people briefed the matter, the offer came from ZF Friedrichshafen, a German auto parts maker. The German company later confirmed that it had discussions on a possible acquisition.
ZF added that it “does not intend to make any further public comment on this matter until a definitive agreement with TRW is reached or discussions are terminated.”
TRW has a market value of more than $10 billion. Its shares have performed well in recent months, reaching record highs.
On Thursday, the shares rose sharply, jumping as much as 11.6 percent, after Bloomberg News earlier reported the approach.
TRW said in a statement that it had not decided whether it would engage in sale talks, and had not set a timetable for making a decision. The company added that it had hired Goldman Sachs to advise it.
TRW makes air bags, crash sensors and other parts used to protect passengers, distributing to a wide range of car makers. It had sales of $17.4 billion in 2013, and employs more than 65,000 people.
ZF, based in Friedrichshafen, in southern Germany, manufactures transmissions, axles and other parts that are included in European and American cars. It had sales of about $23 billion in 2013.
TRW was spun out of defense contractor Northrop Grumman in 2002, with private equity firm Blackstone acquiring the business for $4.7 billion. Blackstone took TRW public less than two years later.