SHARES in Fiat Chrysler slipped yesterday after reports a potential merger with General Motors (GM) has been rebuffed.
The news follows an article in the New York Times which suggested Fiat Chrysler chief executive Sergio Marchionne had proposed a deal with GM in March, only for his counterpart, Mary Barra to flat out refuse such a move. Shares fell three per cent on the news of the rebuke, hitting €13.96 on the Milan stock exchange.
Investor’s reacted negatively to the news as Marchionne had suggested as recently as April that a major M&A deal in the vehicle industry was on the cards. At the time he argued consolidation for the industry was needed to wean it off an addiction to capital.