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.
At Peugeot’s shareholders’ meeting Wednesday, Folz said the carmaker is considering reducing its stake in Faurecia, but that it wants to keep majority control of the car-parts maker.
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.
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