February 14, 2017 / 3:50 PM / 8 months ago

BUZZ-Peugeot SA: In talks to buy GM's Opel

(Updates)

** French carmaker Peugeot SA’s shares jump as much as 6.92 pct to 19.16 euros on Euronext Paris; highest since July 2, 2015

** U.S. automaker General Motors Co’s shares rise as much as 4.81 pct to $37.23 on the New York Stock Exchange

** Peugeot-owner PSA Group says in talks to buy GM’s European Opel business; a deal would make the French carmaker the second-biggest player in the region, and allow GM to focus on its North America and China operations

** “Peugeot needs to get bigger to compete with Renault/Nissan and VW - and maybe this is the first attempt,” Morgan Stanley analyst Harald Hendrikse says

** “GM has been loss making in Europe for many years and even adjusting for restructuring costs lost $1.7 bln in the last 3 years alone ... It makes sense for GM to review its strategic options,” Evercore ISI analyst George Galliers says

** French government, which owns 14 pct of PSA, had no immediate comment

** Up to Monday’s close, Peugeot’s stock had risen 50.1 pct on Euronext Paris in the past 12 months, while GM’s shares increased 28.2 pct on the New York Stock Exchange

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