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“Three-headed monster” or the “lion with three heads” - French Minister makes clear he will veto more moves out of France The rescue plan for financially-troubled Peugeot-Citroën, which includes ceding stakes to the French state and Dongfeng Motor of China, will solve any short-term money worries, but risks making a long-term survival plan for the company much more difficult to implement. The €3 billion recapitalisation plan would result in Dongfeng, France, and the Peugeot family ending up with roughly equal 14 per cent stakes in Peugeot-Citroën. These shareholders may have different, conflicting objectives. The French government will be anxious to avoid job cuts. Dongfeng might want to grab production for itself back in China. The Peugeot family, with its stake slashed from 25.4 per cent, will be anxious to carry out the reconstruction plan which depends on huge job cuts, and moving more production outside of high-cost France...more MORE LIKE THIS: STOCK MARKET VIEW | Tesla - Distant dream or reality? 19 Oct 2013 Car market teeters between recovery and relapse 17 Sep 2013 STOCK MARKET VIEW | US car sales forecasts revised upwards 19 Sep 2013 |
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