Report – PSA’s former ruling family to discuss stake ownership image

According to a recent report coming from French newspaper Les Echos, the founding Peugeot family is scheduling a gathering for June to ink the future of its current holding in PSA Peugeot Citroen.

The founding family last year lost control over the Paris-listed group PSA Peugeot Citroen, as the automaker was hit by the massive European slump in demand that yielded two decade-low sales and brought the carmaker on the bring of collapse. The company was saved by Dongfeng, PSA’s partner in China and by the French government – which, together with minor shareholders participated in a 3 billion euros capital in crease. The state and Dongfeng acquired matching 14.1 percent stakes through the deal, while the Peugeot family’s holding was reduced to an equal stake. But the decision to give up control over the firm also brought dissensions inside the clan, with a major rift between two senior family members. Senior family member Thierry Peugeot, who was sitting on the carmaker’s board decided to leave his position in protest in July 2014.

The newspaper further reported he is now also expected to make the same decision about the board of family holding company when the shareholders gather for the annual meeting in May, but he will not relinquish control after getting a new 0.3 percent stake in the company thanks to a separate firm, called Sapar. Les Echos adds that among the members of the Peugeot family there are worries that Robert Peugeot, the FFP’s executive still sitting on the PSA Peugeot Citroen board, might further shrink the family stake in the carmaker.

Via Reuters