FRANCE: PSA Peugeot Citroen quiet on stake speculation

By Simon Warburton | 16 October 2013

PSA Peugeot Citroen is declining to comment on reports it is potentially looking to the French State and Dongfeng Motor to take stakes in the automaker.

Speculation in France indicates a total of EUR3.1bn (US$4.2bn) might result from any equity deal, but PSA declines to add any flesh to the bones at this stage apart from noting it is evaluating developments with other parties.

"We don't comment any more, we don't say anything else," a PSA spokeswoman told just-auto from Paris, referring the matter to an earlier statement which noted: "PSA Peugeot Citroën confirms it is examining industrial and commercial developments with different partners, including the financial implications that would result from them.

"None of these projects has reached maturity yet."

French reports are also centering on several government representatives and financial institutions travelling to China, although there is no confirmation yet of any visit.

If correct, it would add to significant European interest in China, with this week also seeing a major British visit by UK Chancellor of the Exchequer, George Osborne.

Mayor of London, Boris Johnson, is also currently on a six-day trade mission to the country, drumming up interest in British projects.

Last week, the European Investment Bank (EIB) said it would provide PSA with a EUR300m loan to be used for the development of low carbon technologies.

The French Industry Ministry was not immediately available for comment.