Peugeot plans Gefco sale to Russian Railways - source
PARIS, Sept 18
PARIS, Sept 18 (Reuters) - French automaker PSA Peugeot Citroen is close to a deal to sell its logistics division Gefco to Russian Railways, after the state-owned company beat out rival bidders, a source with knowledge of the talks said on Tuesday.
Peugeot and Russian Railways are "preparing to enter exclusive negotiations," said the source, who asked not to be named because the discussions are confidential. A sale agreement "could be concluded in coming weeks."
A spokesman for the Paris-based carmaker declined to comment.
One of the worst casualties of Europe's auto-market slump, Peugeot said earlier this year it planned to raise 1 billion euros ($1.3 billion) by selling a majority stake in GEFCO as it struggles to contain mounting losses.
($1 = 0.7612 euros) (Writing by Laurence Frost; Editing by Christian Plumb)