French Industry Minister Arnaud Montebourg hit out at bickering
among the Peugeot family over plans for a capital increase for PSA
Peugeot Citroen that will likely see the French state and Chinese
auto maker Dongfeng Motor Co. become significant shareholders,
according to an interview published in Monday's edition of Les
Echos.
"These indecent quarrels among the Peugeot family cannot go on
in view of the need to get PSA back on its feet," Mr. Montebourg is
quoted as saying.
He said that because of its family-controlled status Peugeot
"has become isolated, has found itself without an ally in the
world. It is too small, and is in danger." An alliance with
Dongfeng can create a world giant automobile group and bring about
Peugeot's industrial revival, he said, thus allowing its
decision-making bodies and its research, development and industrial
activties to remain in France.
The Peugeot family has been split over the most likely scenario
that will see the French state and Dongfeng acquiring equal stakes
of around 14% in Peugeot as part of a 3 billion euro capital
increase. Some members of the Peugeot family, which will remain a
core shareholder, would prefer to avoid complicated governance
issues that might arise and raise the capital wholly from existing
shareholders and from the market.
Newspaper Web site: http://www.lesechos.fr
-Write to David Pearson at david.pearson@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires