May 18, 2016 / 7:46 AM / 4 years ago

Fiat Chrysler shares up on report of potential GAC interest

A woman walks past a logo of Fiat Chrysler Automobiles (FCA) in Turin March 31, 2014. REUTERS/Giorgio Perottino

MILAN (Reuters) - Milan-listed shares in Fiat Chrysler Automobiles (FCHA.MI) rose more than 3 percent on Wednesday after a media report suggested that China’s GAC was considering making an offer for a majority stake in the Italian-American carmaker.

Il Giornale daily said in an unsourced report that Guangzhou Automobile Group Co Ltd (601238.SS), which already has a joint venture with FCA in China, may be interested in buying a stake.

“The market is betting on rumours that their Chinese partner wants to enter the group,” a Milan-based trader said, adding the stock was also recovering from a fall in the previous session when the carmaker was hit by a broker downgrade.

Fiat Chrysler declined to comment, while GAC declined an immediate comment.

The stock was up 2.8 percent by 0730 GMT, compared with a flat Milan blue-chip index .FTMIB.

Reporting by Agnieszka Flak, Francesca Landini and Jake Spring

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