The supervisory board of ailing French carmaker PSA Peugeot Citroen has approved a proposal to raise capital that would give China's Dongfeng and the French state each a 14-percent stake, according to French daily Les Echos.
The current plan is for a total capital increase of around 3 billion euros, split evenly between an initial share sale to the French state and Dongfeng followed by a rights issue priced at around 7.50 to 8 euros per share, said the newspaper, citing anonymous sources.
Dongfeng and the French state would each inject around 750 million euros ($1.02 billion), according to the report. The Peugeot family, which today owns around 25 percent of Peugeot, would see its stake diluted to around 14 percent.
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