PARIS Dec 12 The Algerian government is likely
to discuss a possible investment in PSA Peugeot Citroen
with French officials, a diplomatic source said on
A potential Algerian investment in the struggling French
automaker may be raised during President Francois Hollande's
visit to Algiers next week, the source said, confirming a report
on La Tribune's website.
He declined to be identified because the discussions were
"We are not commenting on this latest rumour," Peugeot
spokesman Pierre-Olivier Salmon said.
An Algerian deal with Peugeot, which is cutting more than
10,000 domestic jobs and closing a plant to stem losses, could
impact rival Renault's plans for a factory in the
country, the French weekly also reported on Wednesday.
Peugeot shares, which had risen earlier in the day after the
company announced an additional 1,500 job cuts for 2013-14,
advanced further on the Algeria report and were up 6.5 percent
at 5.25 euros as of 1035 GMT.
Renault's framework deal with Algeria, yet to be finalized,
provides for construction of a plant to serve the local market,
which expanded 46.5 percent in the first half to a total of
"We're still in discussion and the dossier is making
progress," a Renault spokeswoman said, declining to comment on
the reported talks over Peugeot.
"We're still waiting to sign the final agreement in the
framework of the memorandum we concluded in May," she said.
(Reporting by Laurence Frost; Editing by Christian Plumb)