Volvo shares fall to record low as Chinese owner sells small stake in car firm

None of the cash from the share sale went to Volvo Cars.

Shares of Swedish car maker Volvo fell as much as 14% to a record low after its majority shareholder, China's Geely, sold a small part of its stake at a deep discount to the previous day's closing price.

Geely had launched a placing of 100 million Volvo Cars shares, which the deal's bookrunners said after the market close were sold at around $350m in total.  The sale of the 3.4% stake leaves Geely with a holding in Volvo Cars of almost 79%, the Chinese company said in a statement.