MILAN, Dec 14: Italian auto giant Fiat denied media reports on Friday that it was in talks with banks about a possible capital increase, after the carmaker’s shares were hit hard during morning trading.

Regarding reports “about alleged Fiat’s ongoing talks with banks regarding a proposed share capital increase,” the company “states there is no specific project in such respect and believes that there is no need for a capital increase,” it said in a statement.

Italy’s Il Messaggero newspaper had said the group was in talks with four banks about a possible capital increase to buy the 41.5 per cent of the US carmaker Chrysler that Fiat does not already own.—AFP