PSA shares spike on report Dongfeng exploring options for stake

FILE PHOTO: A PSA Group logo is seen behind a car displayed during French carmaker’s news conference as they announce the company’s 2018 results at their headquarters in Rueil-Malmaison, near Paris, France, February 26, 2019. REUTERS/Christian Hartmann

MILAN (Reuters) – Shares in PSA Group (PEUP.PA) briefly rose as much as 6.6% on Wednesday and trading volumes spiked after a Bloomberg report said Dongfeng Motor Corp (600006.SS) is exploring options for its 2.2 billion-euro stake in the French carmaker, traders said.

The report said a full or partial sale was being considered.

Officials at PSA could not be immediately reached for comment.

The rise was short-lived. Shares in PSA were up 0.7% by 1117 GMT, lagging the benchmark Paris CAC 40 stock index .FCHI which was up 1.4%.

Reporting by Danilo Masoni in Milan and Sudip Kar-Gupta in Paris; editing by Josephine Mason

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