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The Wall Street Journal reported Tuesday afternoon that Apollo Global Management (NYSE:APO) is in talks to acquire Arconic Corp (NYSE:ARNC).
The report, which cited people familiar with the matter, states that the private-equity firm made a bid for the aerospace parts maker in February. They are also said to have debt financing in place.
Arconic has also contacted other potential acquirers, although the report says there is no guarantee a deal will be made with any of them.
Arconic shares jumped 20% following the news.
The WSJ said Arconic has a significant debt load, and if a deal is concluded, it is expected to carry a hefty premium.
On February 21, Arconic reported revenue of $1.9 billion, missing the analyst consensus estimate of $2.04B, sending its shares over 8% lower.
A deal for Apollo to acquire Arconic would come at a quiet time for private-equity buyouts, with a challenging financing market and a disconnect between buyers and sellers on price creating roadblocks for deals.
