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June 2, 2003

FRANCE: PSA denies speculation that it will sell Faurecia

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 for sale speculation.

By bcusack

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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