PSA Shares A Tough Sell, Offered At Deep Discount

PSA Peugeot Citroen doesn't just have problems selling its cars lately. It also has problems selling its stock. To move the paper, a tried and true tactic is employed: Cash on the … where do you put the cash when you sell shares at a fire sale deep discount? PSA is doing a €1 billion ($1.3 billion) rights issue to fund an alliance with General Motors. The announcement prompted a Moody's downgrade. The new shares appear to be a hard sell. PSA said today it would offer 16 new shares for every 31 shares currently held by investors at 8.27 euros apiece. This would be  "a 42 percent discount to its closing stock price on Monday," says Reuters. Actually, the stock had dropped after the announcement of the GM alliance. Compared to a few days ago, we are looking at a 50 percent discount. Everything has its price. from The Truth About Cars http://www.thetruthaboutcars.com

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