Italian automaker Fiat and its main shareholder denied on Thursday a media report that the company is in merger talks with rival Volkswagen. The German carmaker also said it had no plans for mergers or acquisitions.

Shares in Fiat briefly rose 5 percent, before closing up 1 percent at 7.70 euros ($10.40), after Manager Magazin in Germany reported that the main shareholders in Fiat SpA and Volkswagen AG have had a series of talks about Volkswagen taking over all or part of Fiat, which controls Chrysler.

The report, which did not cite sources, said VW, the world‘s No. 2 automaker, was interested in acquiring Chrysler to help it improve its struggling footing in the United States, and specified that Fiat’s Ferrari subsidiary would be excluded from any deal. Volkswagen has often expressed interest in Fiat’s sporty brand Alfa Romeo.

Fiat said in a statement no merger talks had taken place, a position that was repeated by its majority shareholder in a separate statement issued at the request of Italy’s market watchdog.

Volkswagen said in a statement that “there are currently no M&A (merger and acquisition) projects on the agenda. We are now focusing on boosting efficiency across the group.” (AP)