Adopted family

21 January 2014 By Olaf Storbeck

The stricken carmaker is seeking to repair its battered balance sheet with a 3 billion euro capital increase partly subscribed by Chinese peer Dongfeng and the French government. Given painful dilution and uncertain future earnings, investors’ reaction looks remarkably subdued.

This content is for Subscribers only

Context News

PSA Peugeot Citroen confirmed on Jan. 20 that it will prepare a capital increase worth 3 billion euros. It also said it is negotiating an alliance with the state-owned Chinese carmaker Dongfeng. The capital increase is likely to result in Dongfeng and the French government taking matching stakes in Europe’s second-largest carmaker. The company said it intends to find an agreement by Feb. 19, when it will present annual results for 2013.

Peugeot shares, which lost 11 percent on Jan. 20, recovered 1.5 percent on Jan. 21 and stood at 10.37 euros, 67 percent higher than a year ago.

Email a friend

Please complete the form below.

Required fields *