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Paris - Shares in struggling French automaker PSA Peugeot Citroen soared on Monday on the possibility for eased sanctions in Iran and on rumours that the group would hire a top executive from Renault.
Peugeot cars are a ubiquitous presence on roads in Tehran and the prospective easing of economic sanctions could mean a boost for a company that is at pains to expand sales.
Shares in Peugeot rose 3.76% to €10.61 in late morning trade on Monday, while the Paris CAC 40 was up 0.41%.
According to press reports, the French auto group is considering former Renault number two Carlos Tavares as a potential co-head beside current chief Philippe Varin.
In August, Tavares gave an interview in which he said he had little prospect of being able to succeed Renault chief executive Carlos Ghosn as head of the group one day and left the company abruptly two weeks later.
Talk of Tavares landing at Peugeot comes amid other reports that the company was still in talks with Chinese carmaker Dongfeng about a potential capital injection.
The hiring of Tavares was widely being interpreted as a gambit by cash-strapped Peugeot to satisfy Dongfeng, with Varin viewed as being too closely associated with the Peugeot family.
Peugeot, which reported falling sales for the third quarter, is in the throes of a radical restructuring involving deep job cuts and the closure of a factory.
It was also rescued last year by means of big state guarantees for its financing and credit arm.
Renault shares rose by 1.35% with analysts believing both French auto companies are well-placed to benefit from the easing of sanctions in Iran, a result of a historic deal on nuclear power agreed in Geneva early Sunday.
