Friday, March 29, 2024 | Ramadan 18, 1445 H
clear sky
weather
OMAN
25°C / 25°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

FCA says Peugeot talks progressing despite GM lawsuit

1376250
1376250
minus
plus

FRANKFURT/PARIS: Fiat Chrysler (FCA) said on Thursday talks with Peugeot owner PSA Group to create a $50 billion carmaking group were going well, despite FCA being sued for “substantial damages” by General Motors late on Wednesday.


“Talks are progressing smoothly,” an FCA spokesman said on Thursday about discussions with PSA to create the world’s fourth-biggest automaker.


Shares in FCA were down 3.4 per cent at 0840 GMT, while PSA shares were 1.4 per cent lower.


Asked whether the lawsuit might lead to a review of the two companies’ valuations in the proposed merger deal, a source close to FCA replied: “No.”


In a letter to employees, FCA Chief Executive Mike Manley said: “We are astonished by this filing, both its content and its timing. We can only assume it was intended to disrupt our proposed merger with PSA.”


FCA will vigorously defend itself against this “meritless” lawsuit, the letter, which was seen by Reuters, said.


“We will not be slowed down by this act,” Manley said, adding: “Let’s keep the performance up as it has clearly got some of our competitors worried.”


— Reuters


SHARE ARTICLE
arrow up
home icon