GM Again Rejects Fiat/Chrysler Merger Inquiry

NEW YORK (TheStreet) -- General Motors (GM) is said to have been approached, for a second time, via email by Fiat/Chrysler (FCAU) CEO Sergio Marchionne regarding a potential merger, but has shown no interest in a combination with the company. 

GM CEO Mary Berra said the company's board offered "strong support" for her strategy of keeping the company going solo, Reuters reports.

The offer from Marchionne had been "very much vetted with management and our board, and after we reviewed that we are committed to our plan...and we have strong support," Berra said, Reuters noted.

Marchionne has reportedly reached out to hedge funds and other "potential allies" in order to push GM into a merger, The Wall Street Journal reports. 

GM believes a merger with Fiat/Chrysler wouldn't benefit the company.

"We're focused on our plan. We have scale. We have leveraged the appropriate opportunities...we are merging with ourselves," Berra said, according to Reuters.

Shares of GM are up by 0.79 to $35.26 in late morning trading on Tuesday. 

Insight from TheStreet Ratings Team
:

TheStreet's Jim Cramer Portfolio Manager & Jack Mohr, Director of Research - Action Alerts PLUS commented on Marchionne's attempt to merge with GM. Here is what Cramer and Mohr had to say:

So far, Marchionne's efforts have been futile, though he continues to insist that GM and its stakeholders would be better suited utilizing the company's liquidity to acquire his Italian- American automobile company as opposed to repurchasing company shares.

GM has not shown any particular interest in the possibility of a merger with Fiat, at least not publicly. GM CEO Mary Barra has remained steadfast in the company's efforts to stick to its current strategy, which includes allocating its excess cash towards existing manufacturing operations and the aforementioned share buyback program

While we cannot speculate on the likelihood of a merger between the two companies, we think it is an interesting proposition.

-Jim Cramer and Jack Mohr 'GM Has no Interest in Fiat' Originally Published on 6/9/2015 on Action Alerts PLUS.

Want more like this from Cramer and Mohr BEFORE your stock moves? Learn more about Action Alerts Plus now!

Separately, TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate GENERAL MOTORS CO (GM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, impressive record of earnings per share growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

You can view the full analysis from the report here: GM Ratings Report

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