Fiat has denied reports that it is planning to merge with PSA Peugeot Citroen, after a leaked report suggested that the idea of a merger was due to be presented to the Fiat board.
Italian newspaper Il Sole 24 Ore reported that the merger was being considered by Fiat executives. The proposal was said to outline how the structure of a merged group would work, with the headquarters going to Paris and production remaining in Italy.
Fiat representatives said: “Regarding press reports today, Fiat points out that it is not preparing to submit to the board any sort of merger plan with another company in the automotive sector”. PSA Peugeot Citroen chose not to comment on the speculation, stating that it “does not comment on rumours”.
Fiat shares rose six per cent following the speculation.