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