Updated: February 22, 2012 3:32 AM | By The Associated Press, thecanadianpress.com

Peugeot shares surge after alliance disclosure



PARIS - Shares in PSA Peugeot Citroen, Europe's second-biggest car manufacturer, surged after it said it was in talks with unnamed parties over possible industrial tie-ups.

The company's disclosure came amid speculation that it is in discussions with U.S. car maker General Motors Co. over a partnership.

Europe's number two car maker after Germany's Volkswagen AG said that "in the framework of its strategy of globalization and performance improvement, PSA Peugeot Citroen is examining co-operation and alliances."

The statement late Tuesday says "talks are underway" and that there is no certainty that they will result in a deal.

Shares in the company were up 9 per cent in early Wednesday trading at €15.69.

La Tribune newspaper reported that Peugeot and GM were in talks about an alliance, citing an unnamed "unofficial source."

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