LONDON Dec 11 The board of French carmaker PSA
Peugeot Citroen has approved in principle a 3.5
billion euro capital increase involving China's Dongfeng Motor
Group and the French state, a source familiar with the
situation said on Wednesday.
The proposed deal, which has not yet been finalised,
involves a rights issue and a reserved capital increase which
would be priced at below 7 euros per share, the source said,
adding it was approved at a special Peugeot board meeting held
Under the terms of the proposal, Dongfeng and the French
state would each end up holding around 20 percent of Peugeot and
the Peugeot family around 15 percent, the source said.
Peugeot, which declined to comment, aims to finalise the
capital increase in January or February of 2014. Dongfeng could
not immediately be reached for comment.