Reuters (Milan) - Italian truck and tractor maker Fiat Industrial (FI.MI) denied it had hired banks to sell the company, prompting its shares to erase gains.
La Repubblica newspaper reported that Fiat Industrial Chairman Sergio Marchionne was looking for a buyer to help Italian car maker Fiat (FIA.MI) fund development of U.S. auto group Chrysler.
"In relation to an article published in a daily newspaper earlier today, asserting that the chairman of Fiat Industrial has mandated a group of banks to arrange the sale of the company, Fiat Industrial communicates that this statement is without foundation," the company said.
Fiat Industrial trades separately from sister company Fiat. Its assets include agricultural equipment maker CNH Global (CNH.N) and truck maker Iveco.
Marchionne is seeking to elevate Fiat to a global player through the integration of Michigan-based Chrysler. Fiat is in the process of buying a majority stake of Chrysler.
Shares in Fiat Industrial erased gains after the statement and ended down 0.45 percent. They had risen nearly 3 percent on the back of the newspaper report.
"Talk about selling Fiat Industrial and its assets has been going round for months. Management has been clear that a sale is not on the cards," a Milan-based analyst said.
Exor (EXOR.MI) Chief Executive John Elkann, who is also chairman at Fiat, ruled out any asset sales for Fiat Industrial in April. Exor owns around 30 percent of Fiat Industrial.
In March, Marchionne denied talk of a possible deal with Germany's Daimler AG (DAIGn.DE) over Iveco.
Chrysler reported on Tuesday a 22 percent rise in sales in April.
Exor said late on Tuesday it was teaming up with U.S. media group News Corp (NWSA.O) to explore options on how to run Formula One Motor Racing.
