A French newspaper reported that PSA Peugeot Citroen Chairman Thierry Peugeot has written to his cousin Robert Peugeot, head of the Peugeot’s FFP family holding, to criticize a planned tie-up with China’s Dongfeng Motor that would dilute the family’s influence.
The Peugeot clan currently controls PSA through a 25 % stake commanding 38 % of voting rights. PSA’s board earlier this month approved a 3 billion euro ($4.1 billion) capital increase that would see Dongfeng, the French government and the Peugeot family each with a 14 % stake in the automaker.
“I am worried about the strategy of withdrawal from Peugeot that you seem to want to carry out,” Thierry Peugeot said in the letter, business daily Les Echos reported on, publishing a copy of the letter. “I believe that the Peugeot family must continue to accompany Peugeot and not lose interest in it,” he wrote.
With market conditions showing signs of improvement, Thierry Peugeot has pushed an alternative deal replacing the government’s role with a bigger market issue, potentially allowing the family to remain the biggest shareholder, a source said.
Thierry Peugeot said the negotiations about the future of the carmaker had been carried out without the FFP’s board and without direct contact between it and Dongfeng, leading to a “potentially very negative result” for the FFP.
Via Automotive News Europe