PARIS Feb 8 The French state is examining the
possibility of taking a stake in struggling carmaker PSA Peugeot
Citroen, French daily Liberation reported on Friday,
citing unnamed sources.
The newspaper said this was being treated as a "last-resort"
plan in case Peugeot found itself unable to stem widening
losses. It cited one government source as saying the state could
take part in a capital increase if it became necessary.
Peugeot declined to comment.
On Thursday, the company slashed the book value of its
plants and other automotive assets by 28 percent, in a writedown
adding 4.13 billion euros ($5.53 billion) to its 2012 net loss
to reflect Europe's worsening market outlook.
Last October, the French state said it would offer 7 billion
euros of state loan guarantees to the company's financial arm,
Banque PSA Finance.
(Reporting by Alice Cannet; Editing by Lionel Laurent)