While denying talk of a sale, American Axle said it is considering “strategic opportunities that serve the best interest of the company.”
“In the ordinary course of executing on our strategic plan, we continuously monitor market conditions and assess industry developments and we regularly consider strategic opportunities that serve the best interests of the company (including our customers and associates) and its shareholders,” the company said.
In May, Bloomberg reported that the company had hired an adviser to explore a potential sale. American Axle also said at that time it was not exploring a potential sale.
Following the new report Thursday, shares of American Axle gained as much as 23 percent, the biggest intraday gain in more than two years. They closed up 18.5 percent to $10.80, giving the company a market value of about $1.28 billion.
“AAM does not intend to make any further comment or respond to any inquiries unless or until it determines that further disclosure is appropriate or necessary,” the company said.
American Axle ranks No. 43 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $5.2 billion in 2021. GM is the company’s largest customer, generating about 37 percent of American Axle’s business in 2021, the supplier said in its annual report.