December 12, 2013 / 11:04 AM / 4 years ago

Peugeot shares sinks 10 percent on capital hike worries

PARIS (Reuters) - Shares in PSA Peugeot Citroen (PEUP.PA) tumbled 10 percent on Thursday, representing a 430 million euros ($592 million) wipeout in market capitalization, after the car maker unveiled a big writedown and confirmed it is mulling a capital increase.

Company logos are seen on Peugeot cars parked in Paris, January 9, 2013. REUTERS/Christian Hartmann

    A source told Reuters late on Wednesday that the company’s board had approved a plan for an alliance with Dongfeng Motor (0489.HK) in which the Chinese carmaker and the French state would buy large minority stakes at a 40 percent discount to Peugeot’s current share price.

    “The discount that is being rumoured seems massive, which raises a lot of questions,” a Paris-based trader said.

    Reporting by Blaise Robinson; Editing by Natalie Huet

    0 : 0
    • narrow-browser-and-phone
    • medium-browser-and-portrait-tablet
    • landscape-tablet
    • medium-wide-browser
    • wide-browser-and-larger
    • medium-browser-and-landscape-tablet
    • medium-wide-browser-and-larger
    • above-phone
    • portrait-tablet-and-above
    • above-portrait-tablet
    • landscape-tablet-and-above
    • landscape-tablet-and-medium-wide-browser
    • portrait-tablet-and-below
    • landscape-tablet-and-below