Longtime GM supplier American Axle says it is not for sale

American Axle & Manufacturing Holdings Inc., a longtime powertrain supplier to General Motors, said Friday that it is not for sale and not engaged in discussions to sell the company following a report Thursday suggesting otherwise.

"AAM is aware of the media activity regarding the company on November 3rd," the Detroit-based powertrain supplier said in a statement. "While our long-standing policy is to not publicly comment on market rumors and media speculation, we feel it is important to state that we are not engaged in any discussions to sell the company and that we are not otherwise for sale."

Separately, American Axle said Friday it swung to a $26.5 million third-quarter net profit compared with a $2.4 million loss during the same quarter last year. Revenue improved 26.5 percent to $1.53 billion.

The company's statement comes a day after Bloomberg reported on talks of a takeover.

According to the report, American Axle has sparked "preliminary interest" in a transaction from London-based Melrose Industries Plc and has had contact with two other major auto suppliers: BorgWarner Inc. and Dana Inc.

Dana and BorgWarner declined to "comment on rumors."

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.