Following reports cited in newspaper regarding the replacement of stockholdings of Renault SA with Mercedes owner Daimler AG, the shares of the former elevated in early trading on the Paris stock exchange.

Reaching highest since February, the shares increased to 2.1% to Euro34.28 and Daimler in Frankfurt climbed to 1.2% to Euro33.72.

When asked for explanation on the report in Financial times stating the discussions by both the companies over an agreement of coming up with small cars turning into a bigger inclination for ownership exchange deal, Renault refused to comment while Daimler could not be approached for the same.

Renault has revealed in December that Daimler was being approached for coming up with ideas regarding cut costs as the company struggles to improve its finances.

Renault's Chief Executive Carlos Ghosn, at the Geneva Auto Show, denied disclosing any of discussions with Daimler, as he said that Renault was in talks with many other industry troupes.

Ghosn stated, "There are a lot of talks and we don't communicate before we reach agreement because sometimes these talks collapse".