American Axle & Manufacturing amends rights plan to protect NOLs use

By Lisa Kerner

Charlotte, N.C., Oct. 30 - American Axle & Manufacturing Holdings, Inc.'s board of directors approved an amended and restated rights plan to preserve the long-term value and availability of the company's net operating loss carryforwards and related tax benefits in the event of an ownership change.

The beneficial ownership threshold of American Axle stock is reduced to 4.99%, from 15%, under the modified plan, according to a company news release.

In addition, the scope of the definition of "acquiring person" is expanded to include persons and certain groups that would be considered 5% stockholders under section 382 of the Internal Revenue Code.

Shareholders who currently beneficially own 5% or more of American Axle's stock are exempt under the restated rights plan provided they do not acquire an additional 0.5% or more of the company's common stock, the release said.

The amended and restated rights plan will expire on Sept. 15, 2013.

American Axle is a Detroit-based producer of driveline and drivetrain systems and related components and chassis modules for the automotive industry.

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