American Axle & Manufacturing (AXL) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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The potential risk associated with American Axle & Manufacturing’s business combination arises from Dowlais’ agreements that contain change of control provisions. These provisions, if not waived by the relevant counterparties, could lead to the termination of key contracts, thereby posing a material adverse effect on the newly combined entity. The company faces uncertainty as obtaining necessary waivers is crucial to avoid disruptions in its operations. As such, the inability to secure these waivers could significantly impact the stability and financial performance of the combined company.
The average AXL stock price target is $7.38, implying 43.30% upside potential.
To learn more about American Axle & Manufacturing’s risk factors, click here.
