PSA Peugeot Citroen (UG), Europe’s second-biggest carmaker, plans to sell shares in a 1 billion- euro (1.32 billion) capital increase at a 42 percent discount.
Shareholders, who will have the right to buy 16 shares for every 31 they already own, will pay 8.27 euros per share, the Paris-based carmaker said in an e-mailed statement today. That compares with a closing price of 14.21 euros yesterday.
General Motors Co. (GM) and Peugeot announced last week a broad alliance that will include joint purchasing and vehicle development in an effort to revitalize their European operations. GM will buy 7 percent of the French carmaker as part of the partnership.
“This money will be directed to our strategic projects with GM,” Chief Financial Officer Jean-Baptiste de Chatillon said on a conference call with journalists today. “The money will allow us to accelerate this strategy.”
Peugeot
declined as much as 95 cents, or 6.7 percent, to 13.26 euros and was down 5.5 percent to 13.43 euros as of 11:40 a.m. in Paris trading. The shares have gained 12 percent this year, valuing the French carmaker at 3.14 billion euros.
“The share price never falls down to the offer price,” said Philippe Houchois, a UBS AG automotive analyst in London. “In theory, the price should be 12.30 euros, but a lot will happen in the next two weeks. Peugeot’s shares will eventually stabilize if everything remains constant.”
Read more at : http://www.bloomberg.com/news/2012-03-06/peugeot-seeks-to-raise-1-3b-in-rights-offer.html
Shareholders, who will have the right to buy 16 shares for every 31 they already own, will pay 8.27 euros per share, the Paris-based carmaker said in an e-mailed statement today. That compares with a closing price of 14.21 euros yesterday.
General Motors Co. (GM) and Peugeot announced last week a broad alliance that will include joint purchasing and vehicle development in an effort to revitalize their European operations. GM will buy 7 percent of the French carmaker as part of the partnership.
“This money will be directed to our strategic projects with GM,” Chief Financial Officer Jean-Baptiste de Chatillon said on a conference call with journalists today. “The money will allow us to accelerate this strategy.”
Peugeot
declined as much as 95 cents, or 6.7 percent, to 13.26 euros and was down 5.5 percent to 13.43 euros as of 11:40 a.m. in Paris trading. The shares have gained 12 percent this year, valuing the French carmaker at 3.14 billion euros.
“The share price never falls down to the offer price,” said Philippe Houchois, a UBS AG automotive analyst in London. “In theory, the price should be 12.30 euros, but a lot will happen in the next two weeks. Peugeot’s shares will eventually stabilize if everything remains constant.”
Read more at : http://www.bloomberg.com/news/2012-03-06/peugeot-seeks-to-raise-1-3b-in-rights-offer.html
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