After U.S. alliance partner General Motors sold its 7% stake, Europe’s second biggest carmaker, PSA, fell a further 11.6 % on Friday, making for a 23 % fall in just four days.

Peugeot shares had lost 7.6 % on Thursday after the company unveiled a 1.1 billion-euro write-down at its ailing overseas operations and confirmed it was pursuing a tie-up with China’s Dongfeng Motor Group, which would be underpinned by a share issue.

GM’s 7 % stake, totaling 24.84 million shares, was sold at 10 euros apiece in a private placing with institutional investors, traders said, at the bottom of a range of 10-10.25 euros and at a 5.9 % discount to Thursday’s closing price.

On Friday, the stock was trading at 9.59 euros by 4.40 a.m. EST, valuing Peugeot at 3.4 billion euros ($4.68 billion), a loss of 940 million euros since Monday’s close.

Goldman Sachs analysts removed Peugeot from their pan-Europe “conviction buy list” on Friday, citing “increased dilution risk”. The broker kept its “buy” rating but cut its target price to 12.1 euros from 16.4. Goldman Sachs acted as bookrunner for the Peugeot share placement.

Via Reuters


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