AM General Seeks Buyer

U.S. defense contractor AM General LLC, best-known for its military Humvee vehicles, hopes to sell itself for $2 billion, sources tell Reuters.

AM General has hired investment bank Macquarie Group to look for bidders. The news service says likely buyers are BAE Systems, General Dynamics and Oshkosh, the source say.

The company currently is owned by a group of private equity firms led by MacAndrews & Forbes and Renco Group.

Reuters notes that the would-be sale comes as the U.S. Army seeks prototypes for a successor to the Humvee. Last year AM General won a $550 million contract from the Pentagon to deliver Humvee variants to nine countries that include Afghanistan, Bahrain, Bosnia, Iraq and Kenya.