Fiat Chrysler drops after Dongfeng Motor denies interest

Shares of Fiat Chrysler Automobiles (NYSE: FCAU) were down 0.94 percent to $12.66 on Thursday after China-based Dongfeng Motor Group (HKG: 0489) announced that it has no plans to acquire the automaker or buy a stake in the business.

Zhu Mi, a spokesman for Dongfeng Motor told Reuters there were no plans for an acquisition of the whole group, Fiat or Chrysler separately or a specific brand or technology that belongs to Fiat Chrysler.

The Wuhan-based company was one of several Chinese automakers cited in an Automotive News report that said representatives of "a well-known Chinese automaker" had made an offer this month for FCA. Fiat Chrysler had risen 10 percent on Monday following the report.

Other Chinese carmakers mentioned in the Automotive News report included Great Wall Motors, Zhejiang Geely Holding Group, and Guangzhou Automobile Group. Geely Automobile Holdings Ltd said on Wednesday it was not planning a bid for FCA.

Fiat has effectively been up for sale for at least the last two years. CEO Sergio Marchionne, who sees Fiat-Chrysler as lacking scale, has frequently been cited as a key driver behind the company's push to sell itself.

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