Milan-listed shares in Fiat Chrysler Automobiles rose more than 3 percent Wednesday after a media report suggested that China's Guangzhou Automobile Group may make an offer for a majority stake in the automaker.

Il Giornale daily said in an unsourced report that Guangzhou Auto, which already has a joint venture with FCA in China, may be interested in buying a stake.

"The market is betting on rumors that their Chinese partner wants to enter the group," a Milan-based trader said, adding the stock was also recovering from a fall in the previous session when the carmaker was hit by a broker downgrade.

Fiat Chrysler declined to comment, while GAC declined an immediate comment.