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No deal yet for Peugeot and Dongfeng
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China’s Dongfeng Motor Group Co, now in talks to buy a stake in PSA Peugeot Citroen, yesterday asked for a trading halt pending an announcement concerning “inside information.”
Hong Kong-listed Dongfeng, which already has a joint venture with Peugeot in China, did not give a reason for the suspension. It later issued a stock exchange filing saying no deal had yet been reached with the French carmaker.
The halt comes after sources in France said on Friday that Peugeot negotiators and French government officials will be in China this week for hopefully a final round of talks on the tie-up with China’s second biggest automaker.
The sources said the proposed deal that would see the Chinese carmaker and French government take matching stakes in the Paris-based company through a 3 billion-euro (US$4.09 billion) share issue.
The final push for a deal, due to be presented to the French carmaker’s board on February 18, follows public discord among members of the founding Peugeot family and protests from minority shareholders over the planned capital increase.
It was immediately not clear whether the final agreement, if reached, would be between Peugeot and Dongfeng or its unlisted, state-owned parent, Dongfeng Motor Corp.
Crippled by Europe’s six-year market slump, Peugeot has said it needs fresh funding to survive in the medium term. The company’s financing arm is already being kept afloat by a 7 billion-euro loan guarantee from the French state.
Zhang Yuguang, Peugeot’s China-based spokesman, said he was unaware of a trip to China by company negotiators.
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