No Deal Yet on PSA Equity Sale

Dongfeng Motor Group says no agreement has yet been reached on a €3 billion funding plan for PSA Peugeot Citroen.

The Chinese company confirms reports last week that it has met with PSA and the French government about the proposed equity sale.

PSA is expected to sell equal equity stakes to Dongfeng and the French government worth a combined €2 billion, then issue another €1 billion in shares for purchase by other shareholders. Reports speculate the Peugeot family, currently PSA's largest shareholder, will buy much of that offering.

PSA said last month it hoped to finalize a deal by the time it reports 2013 financial results on Feb. 19.