Sam Boughedda

American Axle & Manufacturing Reports of a Takeover by Holdings (NYSE) were dismissed Monday.

Bloomberg reports that an automobile manufacturer of drivetrain and automotive components was looking into a possible sale late Friday. Sources familiar with the situation stated that a leveraged purchaseout by a private equity company was possible, even though the net debt of $2.67 trillion at March’s end could pose a problem.

AAM however refuted these rumors by stating in a Monday statement that they are not involved in any process to sell the company.

It stated that the company is currently focused on execution of its stand-alone strategy, but it continues to “regularly contemplate” other strategies.[s]”Strategic opportunities that best serve the interests of our company” they say, but aren’t in discussions about a sale.

RBC Capital analyst Joseph Spak stated in a note that Friday’s Bloomberg report was “conceptually” a sale made sense.

The industry and AXL’s crucial truck programs shift to ICE, which could cause headwinds for the company. [Internal Combustion Engines]To BEV [Battery Electric Vehicles]. Spak stated that AXL had made significant progress in winning electric vehicle sales, but the company must continue to invest to make this happen.

American Axle shares rose 11% Monday