Everybody remembers the first two rules of Fight Club. But what about the rest of them? Like the fourth rule: "Only two guys to a fight," and the fifth rule: "One fight at a time, fellas." In mergers and acquisitions terms, only two parties to a merger, and one merger at a time. Well it looks like the fellas over at Fiat might want to watch the movie read the book over again, because they appear to have forgotten the rules.

Since parting ways with General Motors, Fiat has been looking for a new partner in which to form an alliance. Before the alliance with Chrysler surfaced, there were reported talks with French auto group PSA, parent company to both Peugeot and Citroen. It got to the point where even Italian and French government leaders were discussing how they could facilitate the deal. But once the Chrysler tie-up emerged, everyone assumed the PSA deal was dead in the water. Apparently not everybody, because even with the Chrysler deal inked, the latest reports suggest that certain elements within Fiat – namely the Agnelli family, its biggest shareholder – are still interested in merging with the French automaker. Fiat denies the possibility, while PSA had no comment. Even without taking Chrysler into account, the merger between PSA (Europe's second largest automaker) and Fiat (Europe's third largest) would put it in contention with Volkswagen for the largest in Europe and third largest in the world. Adding Chrysler's output to the equation could put the mega group within striking distance of Toyota and General Motors for the title of the world's largest automaker.

[Source: Detroit News]