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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Peugeot to take control of Mitsubishi: report AFP - Thursday, December 3 Send IM Story Print Peugeot to take control of Mitsubishi: report Slideshow: Full Photo Coverage: Business & Economy TOKYO (AFP) - – Mitsubishi Motors said Thursday it was in talks with PSA Peugeot Citroen to enhance their cooperation as a report said the French group was set to take control of the troubled Japanese carmaker. Mitsubishi and Peugeot have been cooperating in vehicle supply and future joint production in Russia but are negotiating a deeper alliance, Mitsubishi spokesman Kai Inada said. "We are discussing possible projects that could be beneficial to both companies. A capital tie-up is one of the options," he told AFP, stressing nothing has been decided on whether they will go ahead with a capital alliance. The Nikkei economic daily said Peugeot was in the final stages of talks with Mitsubishi to effectively take over the Japanese company, which posted a first-half net loss of just over 400 million dollars as global sales slumped. Mitsubishi would likely issue 200-300 billion yen (2.3-3.4 billion dollars) in new shares, giving Peugeot a 30-50 percent stake, the daily said, without citing its sources. The deal would give Mitsubishi a cash injection while Peugeot would tap the Japanese company's expertise in electric vehicles and its network in emerging countries, the report said. Mitsubishi could also take an equity stake in Peugeot, it said. It would create the world's sixth-largest automobile alliance with combined sales of roughly 4.45 million vehicles in 2008, behind Ford Motor of the United States but ahead of South Korea's Hyundai Motor. If the deal goes through, it would be the first investment in a major Japanese automaker by an overseas rival since France's Renault took a stake in Nissan in 1999. French financial newspaper La Tribune also reported a possible tie-up between Peugeot and Mitsubishi in September, and analysts said the two companies would be a good fit with a complementary presence in Europe and Asia. The Japanese automaker's current top shareholder is Mitsubishi Heavy Industries with a 15.17-percent stake. The firm and two other Mitsubishi group companies hold a combined interest of 34 percent. Recommend Send IM Story Print Related Articles Peugeot, Mitsubishi seek deeper ties as downturn bites Reuters - 55 minutes ago Siemens reports 4Q net loss of $1.65 billion AP - 1 hour 1 minute ago Bernanke, seeking second term, to defend Fed role Reuters - 1 hour 6 minutes ago Indian shares up 1 pct; banks, Reliance top gains Reuters - 1 hour 6 minutes ago Peugeot confirms Mitsubishi 'partnership' talks AFP - 1 hour 11 minutes ago News Search Top Stories Comcast to announce NBC Universal deal: source ECB seen signalling easing of crisis measures Bank of America to repay $45 billion to US Toxic chemicals found in a third of children's toys: study Fed sees signs of improving job market, overall economy More Top Stories » Most Popular Most Viewed Most Recommended Dubai and Abu Dhabi markets plunge on debt woes WHO changes HIV treatment advice Dubai World to restructure parts of group including Nakheel Trade ministers disagree on WTO Doha talks Early intervention aids children with autism: study More Most Viewed » Global stocks mixed amid Dubai debt crisis Tiny magnetic discs could kill cancer cells: study Alcohol helps cut heart disease risk for men: study Mankind using Earth's resources at alarming rate Dubai blackout over debt plans to hit Gulf markets More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2009 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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