Italian auto giant Fiat on Thursday denied a German magazine report about negotiations over a possible takeover by Volkswagen, which boosted Fiat shares on the stock market.
"There has been no discussion on a merger of Fiat with Volkswagen," a spokesman for the company was quoted by the ANSA news agency as saying.
Shares in Fiat meanwhile rose 1.91 percent to 7.745 euros despite the market falling overall, with the benchmark FTSE Mib index down 1.49 percent in afternoon trading.
Fiat`s stock had jumped by as much as 3.68 percent earlier in the session.
The shares were also boosted by data showing a 5.4-percent rise in European auto sales in June, confirming a recovery in a sector badly hit by the economic crisis.
The report in Manager Magazin that said Volkswagen was looking into "a takeover or partial takeover opf rival Fiat-Chrysler".
The magazine quoted company sources saying Volkswagen was particularly interested in Chrysler and its US distribution network, while it said that Italian maker wanted to focus on its Ferrari sports car brand.
The report was also denied by Exor, the investment company of Fiat`s founders, the Agnelli family, which holds a controlling stake in the auto giant.
