German auto supplier ZF Friedrichshafen, moving to acquire TRW Automotive Holdings, has been told by lenders that financing is available for a higher all-cash bid which could value the U.S. company at as much as $13 billion, people with knowledge of the matter said.

ZF, working with Citigroup, is exploring a proposal that values TRW at between $110 to $112.50 a share, said two of the people, who asked not to be identified because the matter is private.