Chinese startup Lattice Power has emerged as an unexpected bidder in the auction of Philips lighting component business, reported Reuters.

Working with its two investors GSR Ventures and Singapore state fund Temasek, Lattice Power has put in a last minute competitive bid that could turn around the table for other rival buyout groups, and oust them from the competition, said two sources familiar with the matter.

"It looks like the Chinese are there. But it is unclear if their chances are very big," another source said.

Philips adviser Morgan Stanley aims to enter exclusive talks with one of the bidders by early next week.

Last week, Reuters reported private equity firms CVC and KKR were in the lead for acquiring Philips lighting component business, which consists of Philips Lumileds and the company’s automotive lighting sector.

Lattice Power, a small company already has some connection to Philips, having appointed James Haworth, a former Philips executive as the head of its U.S. operations.