Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

10/14/2013 (1 year ago)

Catholic Online (www.catholic.org)

Agreement would mean that French family would lose control of car business

Dongfeng, one of China's leading car makers is reportedly looking into acquiring 20 to 30 percent of France's Peugeot. Under the plan, the struggling French auto giant would obtain a three billion euro capital increase. There is a catch: if the plan goes through, the Peugeot family would lose control of the company because the cash injection would dilute its 25.4 percent stake and 38.1 percent in voting rights.

Well known for its stylish vehicles, Peugeot nonetheless was among the hardest hit by the European auto slump.

Well known for its stylish vehicles, Peugeot nonetheless was among the hardest hit by the European auto slump.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

10/14/2013 (1 year ago)

Published in Business & Economics

Keywords: Peugeot, Dongfeng. car deal, European auto industry


LOS ANGELES, CA (Catholic Online) - The Peugeot family indicated it was ready to give up control as the company carried out initial soundings on a Dongfeng tie-up.

PSA Peugeot Citroen is preparing a $4.1 billion capital increase. Chinese partner Dongfeng along with the French government would take matching stakes in the auto maker.

People with inside knowledge of the plan shared information on the condition of remaining anonymous. A French delegation of executives, government officials and bankers is going to China for talks. An outline will be finalized, and the agreement could be as soon as a few weeks. 

If finalized, state-owned Dongfeng Motor Co Ltd and the French government would each contribute 1.5 billion euros and acquire 20 to 30 percent of the car maker, under the draft agreement, which Peugeot hopes to finish this year.

An expansion of DPCA, the Peugeot-Dongfeng joint venture in China would shortly follow, adding more Peugeot vehicles and technology to target other markets in the region.

Among the hardest-hit of a six-year European car sales slump, Peugeot is seeking more cooperation with Dongfeng or another automaker. Peugeot is seeking to cut costs and losses that have threatened its survival.

"Peugeot confirms it is studying new industrial and commercial projects with different partners, as well as the financing to accompany them," a company spokesman said, declining to elaborate. "None of these plans have yet reached an advanced stage."

The French finance ministry has declined to comment and Dongfeng officials were not immediately available out of office hours.

The new capital would be partially raised through a rights issue in which the Peugeot family would sell new stock to the French government with the remainder would be raised in a reserved capital increase.

The 3 billion euro cash injection would amount to 68 percent of the French car maker's 4.39 billion euro market value. It would be worth about 40 percent of the new share capital and also dilute the seven percent stake held by General Motors Co.

A birth foretold: click here to learn more!

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for October 2014
Peace:
That the Lord may grant peace to those parts of the world most battered by war and violence.
World Mission Day: That World Mission Day may rekindle in every believer zeal for carrying the Gospel into all the world.



Comments


More Business & Economics

Christmas shopping in October? Apparently it's becoming a big deal Watch

Image of Shoppers are already out, despite the fact Halloween hasn't even arrived.

By Catholic Online (NEWS CONSORTIUM)

Shoppers are starting early with October 5 being declared by retailers as "Stock Up Saturday." Consumers are already Christmas shopping which means more of the revenue available to retailers will be harvested earlier in the shopping season. For retailers that choose to ... continue reading


List of Top 20 World Brands - Apple tops Google as world's leading brand for second time in row Watch

Image of The Apple Watch has enjoyed success in numerous fashion circles, featured on the cover of Vogue, among others.

By Catholic Online (NEWS CONSORTIUM)

Apple has topped Google as the world's most valuable brand for the second year in a row. The two companies are the only brands to be valued at more than $100 billion, according to the annual Best Global Brands report. LOS ANGELES, CA (Catholic Online) - ... continue reading


Here they come! China passes U.S. economy based on purchase power Watch

Image of Under President Obama's administration, China may surpass the U.S. economy.

By Catholic Online (NEWS CONSORTIUM)

The International Monetary Fund (IMF) has reported that China has overtaken the United States and is now the world's largest economy, at least based on purchasing power parity (PPP). LOS ANGELES, CA (Catholic Online) - The IMF said that by the end of 2014, China ... continue reading


Rosie the Riveter would cry: Record 55,553,000 women not participating in U.S. workforce Watch

Image of The strides made by women in the workplace sadly isn't reflected in recent job statistics.

By Catholic Online (NEWS CONSORTIUM)

The strides made by women in the workplace seems to have gone up in smoke across the United States. The determined visage of Rosie the Riveter during World War II to women taking the place of men in hard industry - declaring "We can do it!" would certainly shed ... continue reading


400 wealthiest Americans now worth cumulative $2.3 TRILLION Watch

Image of Facebook founder Mark Zuckerberg has finally cracked America's most wealthy top ten at tenth place.

By Catholic Online (NEWS CONSORTIUM)

The rich, indeed get richer -- America's wealthiest are worth more than ever before. The United States' top 400 billionaires are now worth a dazzling $2.3 trillion, according to the latest edition of the Forbes 400. LOS ANGELES, CA (Catholic Online) - It comes ... continue reading


Record debt coupled with slow growth point to economic crisis, Geneva Report says Watch

Image of The Geneva Report says the rapid rise of public sector debt in rich countries and private debt in emerging markets, especially China, may lead to0 fresh economic crisis.

By Catholic Online (NEWS CONSORTIUM)

Record debt and slowing economic growth suggest the global economy could be heading for another crisis, the 16th annual Geneva Report warns. Commissioned by the International Center for Monetary and Banking Studies, the report predicts interest rates across the ... continue reading


Walmart to enter banking world with low-cost checking accounts Watch

Image of Walmart has been eying financial services for some time now.

By Catholic Online (NEWS CONSORTIUM)

Walmart is making its biggest venture into the banking world after several failed attempts in the past. The nation's largest retailer is joining Green Dot, already known for its prepaid payment cards, to supply checking accounts to nearly everyone over 18 years ... continue reading


The Chinese are coming! E-commerce giant Alibaba cleans house with its initial public offering Watch

Image of Chinese e-commerce giant Alibaba has raised more than $21 billion with its IPO, with stocks priced at $68 per share, signaling a strong demand for the tech-giant.

By Catholic Online (NEWS CONSORTIUM)

The Chinese e-commerce giant Alibaba has made the largest U.S.-listed initial public offering (IPO) of all time, with stocks priced at $68 per share, signaling a strong demand. LOS ANGELES, CA (Catholic Online) - Only large investors, like hedge funds, can ... continue reading


Bottom of the Barrel - Thanks to business tax, the U.S. is Number 32 in the world Watch

Image of A competitive tax code is one that limits the taxation of businesses and investment. Since capital is mobile and businesses can choose where to invest, tax rates that are too high

By Catholic Online (NEWS CONSORTIUM)

A new international ranking shows that the U.S. tax burden on business is close to the worst in the industrialized world. So says the Wall Street Journal, the nation's leading journal on business. The White House and Sen. Charles Schumer (D., N.Y.) will attempt ... continue reading


Unemployment rate for black Americans at 11.4 percent, more than double the rate for whites Watch

Image of There remains a wide disparity in employment in the United States, in spite of efforts to close this broadening gap.

By Catholic Online - (NEWS CONSORTIUM)

There remains a wide disparity in employment in the United States, in spite of efforts to close this broadening gap. Figures show that while unemployment nationwide is 6.1 percent, the unemployment rate for black Americans at 11.4 percent. LOS ANGELES, CA ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Ephesians 2:1-10
1 And you were dead, through the crimes and the ... Read More

Psalm, Psalms 100:2, 3, 4, 5
2 serve Yahweh with gladness, come into his presence ... Read More

Gospel, Luke 12:13-21
13 A man in the crowd said to him, 'Master, tell my ... Read More

Saint of the Day

Saint of the Day for October 20th, 2014 Image

St. Paul of the Cross
October 20: St. Paul of the Cross was born at Ovada in the Republic of ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter