PSA shares spike on report Dongfeng exploring options for stake
Reuters
Published Aug 07, 2019 08:17AM ET
PSA shares spike on report Dongfeng exploring options for stake
MILAN/PARIS (Reuters) - PSA's shares (PA:PEUP) briefly rose as much as 6.6% on Wednesday and trading volumes spiked after a Bloomberg report said Dongfeng Motor Corp (SS:600006) is exploring options for its 2.2 billion-euro ($2.5 billion) stake in the French carmaker.
The report, which was cited by traders as the reason for the brief jump in PSA's shares, said a full or partial sale was being considered.
PSA "does not comment on rumors", the company said in a statement sent to Reuters.
The French carmaker's board has not received any notification or signal that Dongfeng planned to reduce its stake, a source close to the company said.
The surge in PSA's shares was short-lived.
By 1205 GMT, the stock was up just 0.6 % at 20.08 euros, lagging the benchmark Paris CAC-40 (FCHI) equity index which was up by around 1%.
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