Family, GM would see interests diluted - conflicting holdings in China might undermine deal - Does this mean Peugeot- Citroën can’t meet financial targets?

Peugeot-Citroën shareholders ran for the exits after reports the financially sick company will be bailed out by a French-Chinese combination.

The shares dropped about 10 per cent over a couple of days when unconfirmed reports circulated that Chinese carmakers Dongfeng and the French government would subscribe to a €3 billion share issue giving them both 20 per cent stakes in Peugeot-Citroën. 

This would slash General Motors seven per cent stake to about four per cent, and end Peugeot family control by reducing its interest to 14 per cent. 

The family currently has 25 per cent of the shares and 38 per cent of the voting rights...more