PSA in Talks to Add Another Partner

PSA Peugeot Citroen acknowledges it is discussing new partnerships and their "financial implications," according to media reports.

On Tuesday China Business News cited an unidentified source at Dongfeng Motor Corp., who says the Chinese carmaker is prepared to buy a 30% stake in PSA for 10 billion yuan ($1.6 billion).

PSA is 25.5% owned by the Peugeot family and 7% by General Motors Co. Analysts point out that any buyer of a 30% stake in a listed company in France also must make a tender offer for all remaining shares.

GM, which has the option of exiting its partnership if control of PSA changes, indicated last month it was not concerned about a possible Dongfeng investment in the French company. Whether the Peugeot family would accept losing control of PSA is far less certain.