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Peugeot PT Cut at Goldman; GM Stake Sale Negative, Exane Says 2013-12-13 07:54:27.59 GMT
By Brian Lysaght Dec. 13 (Bloomberg) -- Peugeot removed from Pan-Europe conviction buy list, PT cut to EU12.1 from EU16.4, Goldman Sachs says. * Cites Reuters report of rights issue discounted at EU7-shr; says increased dilution risk will impact shares short term, in medium term co will benefit from EU mkt recovery * Exane (outperform) cuts EPS ests., leaves PT unchanged at EU17 * GM sale of 7% stake at ~4% discount suggests GM has negative view of Peugeot’s prospects, that potential Peugeot-Dongfeng venture would compete with GM-SAIC venture * Commerzbank (add) says GM stake sale a surprise, may further undermine the alliance synergy target of $1.2b, which has alread been lowered * May also indicate Peugeot agreement with new partner, probably Dongfeng, is “just around the corner” * Macquarie (underperform) cuts 2013-15 EPS ests, says shareholders running dilution risks * NOTE: GM shares offered in private placement EU10-EU10.25 each, according to a person with knowledge of the transaction who wasn’t authorized to speak publicly: Bloomberg * Earlier: Peugeot Indicated 5.9% Lower in Lang&Schwarz Pre- Market NSN MXQIN26KLVS8 <GO> * GM Selling Peugeot Stake as Alliance Delivers Less Savings NSN MXPT0G6S972E <GO> * Yday: Peugeot Falls for 3rd Day After Charge, Capital Increase News NSN MXOQY96S972I <GO>
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--With assistance from Roger Neill in London. Editor: Gaurav Panchal
To contact the reporter on this story: Brian Lysaght in London at +44-20-7330-7908 or blysaght@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net