11/21/2019, 10:59 AM (Source: TeleTrader)
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FCA: Merger talks with Peugeot 'progressing smoothly'

Fiat Chrysler Automobiles N.V. (FCA) spokesman on Thursday said that talks with Peugeot about merging "are progressing smoothly" in spite of being sued by General Motors for racketeering. The spokesman also denied that the lawsuit could lead to a new review of both companies' valuations.

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." In his letter to investors, Manley added that the company will not "be slowed by this act" and that it plans to defend itself against these accusations.

GM sued FCA for alleged racketeering on Wednesday. The lawsuit claims FCA bribed officials from the United Auto Workers (UAW) union with millions of dollars to get an advantage in negotiations over GM.

Breaking the News / TF