PSA's shares rise as Fiat Chrysler withdraws merger offer for Renault

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Fiat Chrysler may take its turn back to Peugeot-carmaker PSA as the latter’s shares rise.

PARIS: Shares in Peugeot-carmaker PSA rose on Thursday, as analysts examined the possibility that Fiat Chrysler might turn back to PSA after FCA withdraws a merger offer for Renault.

PSA shares were up 1.5% by 7:40am, in sharp contrast to Renault whose shares slumped 6.6% while FCA’s shares also fell in Milan. French state bank BPIfrance has a 12.2% stake in PSA’s share capital. “Both parties have acknowledged the need for scale or M&A and may pursue other opportunities. If Nissan was an obstacle PSA-FCA discussions could resume,” wrote brokerage Jefferies.

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