Supplier American Axle & Manufacturing Holdings Inc. is exploring a potential sale, people familiar with the matter told Bloomberg.
The company has hired an adviser to help with the process, the people said, asking not to be identified discussing private information. A leveraged buyout through a private equity firm is a likely option, one person said. No decision has been made and the company could decide to stand pat.
American Axle, in a prepared statement released two days after the initial report, said "we are not engaged in a process to sell the company.
"We are currently focused on executing our stand-alone strategy. In the ordinary course, 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."
Shares in American Axle jumped 6.8 percent to close at $7.21 on Monday. The stock had fallen 28 percent this year through Friday's close, compared with an 18 percent drop for the S&P 500 index.