Peugeot launches rights issue, shares rise

PARIS, April 29 Tue Apr 29, 2014 3:12am EDT

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PARIS, April 29 (Reuters) - PSA Peugeot Citroen launched its 1.95 billion euro ($2.70 billion) rights issue on Tuesday that will see Dongfeng Motor and the French government take 14.1 percent stakes in the carmaker.

Peugeot set a subscription price of 6.77 euros per new share, with investors receiving seven new shares for 12 held, according to a statement published on its website.

The subscription period will run from May 2 until May 14, with the transaction guaranteed by a banking syndicate, Peugeot said.

Shares in the carmaker were more than 4 percent higher in early trading at 11.985 euros. ($1 = 0.7223 Euros) (Reporting by James Regan; Editing by Andrew Callus)