France does not plan investment in Peugeot - report.
8 February 2013 a[euro]" France does not intend to buy a stake in struggling carmaker PSA Peugeot Citroen SA (EPA:UG), a finance ministry source told Reuters today, thus refuting earlier speculation on the matter.
The insider noted that such move was not on the agenda, adding that the group is focusing on pursuing its recovery plan and enhancing its partnership with General Motors Co (NYSE:GM).
PSA recently announced it had taken a EUR4.1bn (USD5.5bn) writedown on the value of its facility and other assets.
Speaking for the BFM Television, Budget Minister Jerome Cahuzac said earlier that the French state must do what it takes to ensure that Peugeot keeps afloat. Previously, newspaper Liberation cited unnamed sources as saying that the French state could take part in a capital hike at the carmaker if needed, but only as a last resort plan.
A spokesperson for Francea[euro](tm)s Fonds Strategique d'Investissement (FSI) told Reuters that the sovereign-wealth fund is not considering an investment into PSA. The carmaker itself did not comment.Country: FranceSector: Motor VehiclesTarget: PSA Peugeot Citroen SABuyer: Government entityType: StakebuildingStatus: Speculation, Denied
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|Publication:||M & A Navigator|
|Date:||Feb 8, 2013|
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