US utility AES jumps on report of potential sale efforts

Shares of U.S. utility AES Corp AES.N rise 11.6% to $12.35 premarket

Bloomberg News on Tuesday reported firm is exploring options including a potential sale amid takeover interest from large investment firms

Several major private equity firms and infrastructure investors circling AES, the report added

AES did not immediately respond to a Reuters request for comment

Brokerage J.P.Morgan says AES has the opportunity to secure a higher valuation for the its renewables growth after two years of challenging price performance

"However, risks could also coalesce if sale talks become firmer, drawing a line in the sand where any lack of a deal ultimately further impairs the AES story," - brokerage adds

As of Tuesday's close, stock down nearly 14% YTD