PSA, French Government in Final Talks with Dongfeng

PSA Peugeot Citroen and representatives of the French government are in China this week in hopes of finalizing a €3 billion share issue, Reuters reports.

The group is meeting with Dongfeng Motor Group, which suspended trading in its stock earlier today pending an announcement.

The three parties hope to complete plans for a two-part plan that would make equity sales of €750 million each to Dongfeng and the French government. PSA also would issue about €1.4 billion in new stock, some of which is expected to by purchased by the Peugeot family.

The scheme reportedly would result in 14% stakes in PSA for Dongfeng, the Peugeot family and the French government. Previous reports said PSA hopes to announce a final deal on Feb. 19 when it reports its 2013 financial results.