Shares in PSA Peugeot Citroen fell 10 percent on Monday on a Reuters report it was preparing a 3-billion-euro ($4.1 billion) capital increase in which Chinese partner Dongfeng and the French state would secure stakes in it.
A draft agreement, which Peugeot hopes to conclude this year, would envisage state-owned Dongfeng Motor Co Ltd and the French government each contributing 1.5 billion euros to acquire matching stakes of between 20-30 percent, people with knowledge of the matter told Reuters on Friday.
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