MILAN (Reuters) -- PSA/Peugeot Citroen's shares rose Thursday morning on reports that Fiat's founding family is weighing a capital increase ahead of a possible merger between the two companies.
Fiat said the report about the capital hike was groundless. A PSA spokesman also had no comment apart from saying the French carmaker's priority was to come out of the crisis gripping the car industry.
Shares in Fiat were down 3.15 percent at 4.31 euros at 0902 GMT. PSA was up 7.12 percent at 13.855 euros.
The capital increase of about 2 billion euros ($2.58 billion) by the Agnelli family's Exor holding company would aim at keeping a significant stake in a merged company, La Repubblica said without citing sources.
The Agnellis have about 30 percent of Fiat through Exor.