Allied Holdings, Decatur, Ga., has engaged Bear, Stearns & Co. to explore the potential divestiture of its Axis Group subsidiary.

A substantial portion of any sales proceeds of the logistics company would be used to pay off debt of the struggling auto carrier.
Axis began operations in 1996 and has grown to become one of the largest non-asset based service providers to the finished vehicle logistics services market in the United States. Axis operates businesses that provide services to the new and pre-owned vehicle market, vehicle processing services and transportation at ports and inland distribution centers, and equipment for containerized international shipment of vehicles.
Already this month, Allied has announced more job cuts and a rate hike as it works on turning the company around. Allied reported a loss of $18.9 million in the first quarter of 2001, compared to a loss of $1 million during the first quarter last year.