Chrysler and Fiat Rumored to Be Discussing Deal

Officials of Chrysler Corp. and Italy’s Fiat SpA are in intensive negotiations that could result in a major deal between the two companies, industry analysts said Monday.

Such a deal could be relatively routine, such as a joint development project, or it could involve one of the auto makers buying a stake in the other.

“There’s no question that they’re talking to one another,” said Shearson Lehman Hutton analyst Joe Phillippi.

Phillippi, who said he has heard rumors that Fiat could seek as much as 25% of Chrysler with an option to buy 51%, said a pact between them would make sense.

Neither Fiat nor Chrysler would comment on the speculation.