PSA Begins New-Stock Sale

PSA Peugeot Citroen is offering new shares to investors at €6.77 as part of its €3 billion capital increase.

The company has already sold two chunks of about €1.05 billion shares each to the French government and China's Dongfeng Motor Corp. at €7.50 per share. The two entities also plan to buy some of the remaining new shares to bring their stakes to 14%.

PSA says other buyers have committed to acquiring 36% of the remaining new shares. Analysts were disappointed in the lower price for the remaining shares, which they interpret as evidence of weak demand among investors.