Market stymies France’s plan to sell Peugeot shares

For the French state, the question is not whether it will sell its stake in Peugeot Citroen, but when.

Nearly 24 months after France bailed out Peugeot jointly with China’s Dongfeng Motor, the state is ready to dispose of its stake in the car maker. The company’s full-year results, slated to be released next Tuesday, will provide a gauge for the state to determine the extent of the company’s turnaround and help it decide on a possible exit.

While the state will pocket a profit of about €600m if it sells the stake now, it may have missed an opportunity to have made a great deal more by not selling the shares in May, when the stock hit an almost four- year high. Since then, an industry emissions scandal together with tumbling global markets have pulled down auto stocks. Peugeot shares have sunk 35% since May 27.