American Axle & Manufacturing (NYSE:AXL) +12.6% after-hours on Friday following a Bloomberg report that the auto components provider is exploring a possible sale and has employed an adviser to assist with the method.
A leveraged buyout by means of a personal fairness agency is a potential choice, based on the report.
American Axle (AXL) faces challenges to keep up income as key clients comparable to Ford and Basic Motors electrify their automobiles and swap to totally different sorts of drivetrain parts.
The corporate’s web debt totaled $2.67B, or ~3.6x earnings, on the finish of Q1, which Bloomberg stated may very well be a hurdle to a sale.
American Axle (AXL) not too long ago reported higher than anticipated Q1 adjusted earnings.