MILAN -- Shares in Fiat Chrysler Automobiles retraced earlier gains to turn negative on Wednesday after China's Guangzhou Automobile Group denied a report it had an interest in taking a stake in FCA.
Italian newspaper Il Giornale had reported GAC was considering making an offer for a majority stake in the Italian-American automaker, but a GAC Group spokeswoman said there were "currently no plans for this."
The two companies already have a partnership that enables FCA to manufacture cars in China. The wider Guangzhou Automobile Group's subsidiary GAC Motor declared its intention last year of reaching the U.S. market in 2016.
FCA declined to comment on the Il Giornale report. Earlier on Wednesday. Its Milan-listed shares jumped more than 3 percent at one point, then fell to stand at 6.29 euros, down 0.1 percent, by 15:00 GMT with traders attributing the fall to the GAC denial. FCA shares traded in New York were up 1 percent at $7.09.
Guangzhou Auto, which was China's was the sixth-largest automaker by sales volume last year, also has joint ventures with Toyota, Honda and Mitsubishi Motors.