The US auto giant General Motors is said to be in talks to buy a 5% stake in French carmaker Peugeot Citroen, give it latest accounts revealed a serious crisis in the auto sector. This was revealed by the financial newspaper Les Echos citing several sources in agreement. The agreement - according to the same sources - would include a clause to maintain the status quo ("standstill agreement"), providing that GM cannot further increase the share capital of PSA without its prior consent. Revelations have set the wings to the title Psa which in the first trades on the Paris stock exchange gained 7,38% to 16,44 euros.
PSA confirmed last Wednesday that negotiations were underway for a possible alliance and it was subsequently the French Minister of Labor Xavier Bertrand who confirmed that it was General Motors. No comment this morning from Peugeot.
According to other sources cited by the newspaper Figaro, the sale would concern 7% of the capital of PSA.
