Peugeot family to vote on carmaker's future on Monday
By Gilles Guillaume
PARIS (Reuters) - The Peugeot family, the largest shareholder in PSA Peugeot Citroen (PEUP.PA: Quote), will meet on Monday to decide whether to give its blessing to two deals aimed at securing the French carmaker's future, a source close to the matter said.
The family's consent is needed so PSA can announce, alongside 2013 results on Wednesday, a memorandum of understanding (MoU) on a recapitalization deal under which the French state and Chinese partner Dongfeng 0489.HK will both take direct stakes in the group.
Peugeot is also expected to announce a separate European car loans alliance with Spain's Banco Santander (SAN.MC: Quote).
Both projects will be on the table of board meetings of the Peugeot family holdings FFP and Etablissements Peugeot Freres on Monday, a source close to the family said.
"They will decide their position on both the MoU and the Santander project," the source said.
Peugeot, battered by a prolonged slump in demand for cars in Europe and sustained by 7 billion euros of state guarantees, has been in talks with Dongfeng for months over a rescue plan that would see the Chinese automaker and French government take matching stakes.
Sources familiar with the matter told Reuters after a new round of talks in China this week that PSA reached an outline deal with Dongfeng and the French state to raise up to 4 billion euros ($5.5 billion) in fresh capital and deepen cooperation with the Chinese carmaker.
The Peugeot clan, which has controlled the company since the early days of the automobile in the 19th century, currently has a 25 percent stake commanding 38 percent of voting rights. Continued...