FOCUS-Peugeot rockets on fresh Daimler bid rumour
(Adds comments from auto sources, paras 20-21, investment banker, para 16,
updates share prices in para 2)
By Christine Tierney, European Auto Correspondent
FRANKFURT, Feb 15 (Reuters) - German-American car maker DaimlerChrysler
AG was paired anew on
Tuesday with France's PSA Peugeot Citroen in the latest takeover rumour
sweeping through the stock markets.
Peugeot shares rocketed on the Paris bourse, briefly gaining more than
10 percent before coming off their
highs. At 1415 GMT, the stock was up 7.85 percent at 219.70 euros.
DaimlerChrysler shares were 0.31 percent
lower at 66.74 euros.
Both companies declined to comment on the rumour which originated in
the London market and had
DaimlerChrysler offering 35 shares plus 10 euros in cash for every 10
Peugeot shares -- or a 15.5 percent
premium on Peugeot's previous close of 203.7 euros.
``This is speculation,'' a DaimlerChrysler spokeswoman said.
The two companies have been in talks since last autumn on the
possibility that the Peugeot group, which
specialises in small cars, might provide DaimlerChrysler with major
components for a future, slightly larger version
of its Smart two-seater.
DaimlerChrysler said at the start of the year that although the
discussions had gone quite far, they were now on
ice as the German company deliberated a small car strategy.
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Steven St.Laurent
Test Engineer
Test Branch, GSD,MCTSSA
MARCORSYSCOM, US Marine Corps
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Office: (760) 725-2296
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