According to a report carried on the Dow Jones wire, PSA Peugeot Citroen Friday denied rising speculation that it may be about to sell its 72% stake in components firm Faurecia . Faurecia ‘s share price has risen sharply on the sale speculation.
According to Dow Jones, a PSA Peugeot Citroen spokeswoman, referring to recent comment by Peugeot Citroen Chief Executive Jean-Martin Folz, told Dow that the company intends to retain control over Faurecia .
A Faurecia spokesperson told the Wall St. Journal this morning that “other than our dividend announcement, a positive outlook for operating margin improvement and a harsh market evaluation, I don’t see any objective explanation to the rise in shares.”
Industry analysts say that the rumour may have gained some credence due to deterioration in PSA ‘s financial results this year.