PSA Peugeot Citroën launched a 1 billion euro rights issue to fund its alliance with General Motors, which will take a 7% stake in the French automaker,
the
Financial Times
reported.
Peugeot plans to use the share offer proceeds to launch a low-carbon-dioxide, small-car platform and expand in emerging markets along with GM, the article said.
GM and Peugeot’s controlling family shareholders will between them take up about 31 per cent of the offer. The Peugeot family will pay 140 million euros for its shares and retain its position as the company’s largest shareholder, with 25.2 per cent of PSA’s capital and 37.9 per cent of voting rights.
(Source:
Financial Times,
March 7, 2012.)
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