Very recently, reports from a pair of European newspapers claimed that General Motors and French automaker PSA Peugeot Citröen were in “advanced talks” about an alliance. The speculation was that the two companies would merge, or perhaps begin a new venture together. Now, a report from Reuters claims that Peugeot may soon announce a sale of less than 5 percent of itself to General Motors. This news comes in with the 2012 Geneva Motor Show on the horizon.
At Peugeot’s current market value of $4.8 billion, a 5 percent stake would be worth $240 million. However, Bloomberg Business Week claims that the deal could be for as much as 7 percent. So much for a merger.