Fiat Chrysler May Have Taken Next Steps In Pursuing General Motors
General Motors Company (NYSE: GM) may be prepping itself for a battle to fight back a forced tie-up with Big 3 peer Fiat Chrysler Automobiles NV (NYSE: FCAU), according to sources cited by Reuters on Wednesday afternoon.
Big banks like Goldman Sachs, Morgan Stanley and UBS have been tapped to advise GM, according to Reuters.
As recently as June 9, The Wall Street Journal had reported Fiat Chrysler was looking for funds to take part in a potentially activist effort to push for a merger with GM. In late May, the New York Times suggested GM turned down a bid from Fiat Chrysler earlier in 2015.
According to Wednesday's Reuters report, "[GM CEO Mary] Barra's rejection has not stopped FCA boss Sergio Marchionne working on a merger plan, according to the sources. He is lobbying GM investors in an effort to drag the GM board to the negotiating table, they said... GM signed a letter of engagement with Goldman Sachs earlier this week seeking advice on FCA, one of the sources said."
"It would be inconceivable for General Motors not to be talking to any number of advisers about normal business operations, but I'm not going to list the issues one by one," GM Senior Vice President Tony Cervone told Reuters, though he did not confirm his company was retaining Goldman Sachs or Morgan Stanley specifically on Fiat Chrysler's merger approach.
Shares of both GM and Fiat Chrysler were trading up in Wednesday's post-market session.
After GM closed up 0.5 percent at $35.80, the stock last traded at $35.98. Fiat Chrysler shares, meanwhile, were last indicated up nearly 3 percent to $15.60.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.