Fiat Chrysler Automobiles NV (NYSE:$FCAU) stock was on the rise today. Why? It all started after news of a takeover bid was announced to the public.
Based on reports, Fiat Chrysler Automobiles has declined a takeover bid from a Chinese car company. While the identity of the company making the takeover bid remains unknown, we do know that the offer was a slight premium over FCAU stock’s value.
Even though Fiat Chrysler rejected this offer, there are still said to be a number of other Chinese companies interested in the company. Several reports have emerged that executives from different companies in the country have been working on a potential deal to acquire Fiat Chrysler.
According to one unnamed source, the deal will include the Chrysler, Dodge and Fiat, but not the Alfa Romeo and Maserati models. As of right now, the current talks state that FCAU is planning to spin Alfa Romeo and Maserati off into a different, UK-based company.
Where has this interest in Fiat Chrysler come from? Many speculate Chinese automakers are interested in the company due to pressure from the government.
If Fiat Chrysler decides against selling itself, there is a good chance it will spin off more of its business. For instance, this could include integrating the Jeep and Ram brands into their own company.
As of 12:00 p.m. on Monday, FCAU stock was up 8% and is up 37% so far this year.
Featured Image: depositphotos/TKKurikawa
