NEW YORK: Shares of Fiat Chrysler Automobiles surged Monday following a report that it is being targeted for a possible takeover by multiple Chinese companies.
US-traded shares of FCA were up 8.3 percent at midday at $12.57 after the trade publication Automobile News reported that Chinese companies were eyeing Fiat Chrysler as a way to enter the North American market.
FCA rejected at least one bid from an unnamed “well-known” Chinese company this month, while other large Chinese automakers were also conducting due diligence on the company, said Automobile News.
The publication said FCA executives traveled to China to meet with Great Wall Motor Co. Great Wall, created in 1984, sold more than a million cars last year under the Great Wall and Haval brands.
The article also mentioned other Chinese companies as potential suitors, but said it was unclear which ones would follow through.
FCA sells annually about 4.5 million cars and light trucks under brands that include Jeep, Dodge, Ram, Alfa-Romeo and Maserati, as well as its two namesake units. FCA spun off the Ferrari brand on Wall Street in October 2015 and Milan in January 2016.
The company’s chief executive, Sergio Marchionne, has said repeatedly that he would like to merge FCA with another large company to realize better economies of scale.