Report: Peugeot Family Endorses Equity Sale to Dongfeng

PSA Peugeot Citroen's plan to raise about €3 billion with new stock and equity sales has been endorsed by the Peugeot family that controls 38% of the company's voting rights, according to Bloomberg News, which cites unidentified sources.

PSA proposes to issue about €1.4 billion in new stock and make two equity sales of €750 million each to China's Dongfeng Motor Corp. and the French government. Bloomberg notes that the new funding would equal 73% of PSA's current market value.

PSA hopes to announce a final funding plan when it reports 2013 earnings on Feb. 19. The final hurdle will be garnering the approval of two-thirds of those attending its annual shareholder meeting on April 30, according to the company.