France mulls taking stake in Peugeot: paper

The French state is examining the possibility of taking a stake in struggling carmaker PSA Peugeot Citroen , French daily Liberation reported on Friday, citing unnamed sources.

The newspaper said this was being treated as a "last-resort" plan in case Peugeot found itself unable to stem widening losses. It cited one government source as saying the state could take part in a capital increase if it became necessary.

Continue Reading Below

Peugeot declined to comment.

On Thursday, the company slashed the book value of its plants and other automotive assets by 28 percent, in a writedown adding 4.13 billion euros ($5.53 billion) to its 2012 net loss to reflect Europe's worsening market outlook.

Last October, the French state said it would offer 7 billion euros of state loan guarantees to the company's financial arm, Banque PSA Finance.

(Reporting by Alice Cannet; Editing by Lionel Laurent)