Fiat Chrysler shares climb on talk of a merger analysts think is 'half-baked'

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A report Wednesday said Renault would consider merging with Fiat Chrysler, but Renault's current troubles with Nissan are a major stumbling block.

Shares of Fiat Chrysler climbed just over 3 percent Wednesday on talk of a merger with French carmaker Renault, but analysts are skeptical a marriage between the two companies is likely.

"We've been asked to give a view, so here goes: this idea is half-baked, politically almost impossible to deliver and even if achieved, the resulting company would be unmanageable," Warburton said."We hope it is a banker's fantasy rather than a serious proposal from the key decision makers." Warburton had even stronger words of skepticism for the hope that Renault and Nissan can reconcile their differences.

 

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